Bond yields fell after Jerome Powell stated that the Federal Reserve has not made a decision to raise interest rates at every other meeting, bolstering bets that the central bank will not raise rates in September.
US two-year yields dropped four basis points to 4.84%. The value of the dollar fell. The S&P 500 was little changed, the tech-heavy Nasdaq 100 underperformed, and the Dow Jones Industrial Average edged slightly higher, marking the Dow's 13th consecutive advance and the longest winning streak since 1987. In late trading, Facebook parent Meta rose after reporting revenue that exceeded expectations.
The Fed raised interest rates by 25 basis points to the highest level in 22 years, and Powell stated that further increases will be dependent on incoming data as officials fine-tune their efforts to further reduce inflation. Swaps referencing future Fed decisions priced in a slightly lower probability of another quarter-point rate hike this year, which dipped to 47%.