Stocks Halt Rally as Yields Rise Before Price Data: Markets Wrap

A rally that put stocks on the brink of all-time highs sputtered and bond yields rose as euphoria around Federal Reserve rate cuts eased just days ahead of a key inflation reading.

While Jerome Powell on Friday signaled a September rate cut is likely amid downside risks to the jobs market, doubts over the pace of those reductions lingered on Wall Street. In addition to officials remaining divided, traders are bracing for a not-so-friendly price reading later this week.

Wall Street’s Fed euphoria fades.

Source: Bloomberg

Policymakers are grappling with inflation that’s still above their 2% goal — and rising — and a labor market that’s ...