- Following a slide fueled by concerns about the financial system and the economy, stocks finished off session lows as dip buyers swooped in.
- The S&P 500 recovered most of its 1% drop. Apple has ended its year-long losing streak. Eli Lilly led gains in health-care companies after sales of its weight-loss treatment exceeded expectations, and a new study raised the possibility that its drug could also benefit heart disease. Banks fell after Moody's Investors Service downgraded ten small and midsize American lenders and said it may downgrade a few large firms.
- Treasury 10-year yields have fallen to around 4%. The bond market will have to digest the largest round of refunding auctions since last year before the week is out. The $42 billion sale of three-year notes on Tuesday produced a lower-than-expected yield, indicating that demand was stronger than expected.
- With only a few days until a key inflation report, investors had to wade through comments from central bank officials. Fed Bank of Philadelphia President Patrick Harker stated that, barring any economic surprises, the central bank may be able to stop raising interest rates, though rates would need to remain at their current high levels for some time. Harker also stated that "we'll start to bring interest rates down sometime probably next year." His Richmond counterpart, Thomas Barkin, argued that it was too early to say whether another increase in September was necessary.