U.S. stocks continued a rebound from a correction, while Treasury yield rose toward a 4-year high as economic data supported expectations that the Fed will maintain a gradual approach to raising interest rates.
The S&P 500 Index climbed for a fourth day as banks and tech shares rallied. Futures on the gauge had tumbled on concern the Fed would quicken its pace of tightening following data that showed faster-than-forecast inflation last month. Those fears receded as investors digested a separate report showing weak retail sales that raised questions about the strength of the economy.
Signs of an inflation pickup have roiled financial markets this month and put the S&P 500 into a correction. Investors must now judge whether stronger price increases will force the Fed to raise rates faster than the market currently anticipates or if the retail sales signal a potential crack in economic fundamentals.
Source: Bloomberg Pro Terminal
Jr Trader Alexander Kumanov
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