- In a tumultuous day of trading, US equities climbed as dip-buyers emerged in the last minutes of trade on Friday. The short end of the curve took the brunt of the sell-off in Treasuries.
- The S&P 500 ended the day up 0.5%, near highs of the day with the 1% swing Friday the smallest since February 15. The Nasdaq 100 ended the day with minimal change. The 2-year Treasury note yield climbed 14 basis points to 2.28%, making it one of the most sensitive to interest rate swings.
- This week, the S&P 500 fluctuated between gains and losses as investors considered the threats to the economy posed by monetary policy tightening and Russia's war in Ukraine. Stocks gained for the second week in a row despite the volatility.
- As the market ramped up bets on the Federal Reserve raising rates, treasuries plummeted, setting the stage for one of the biggest quarterly routs since at least the early 1970s. Swaps traders are pricing in a full two percentage points of extra Fed hikes this year, while Citigroup economists increased their expectation for rate hikes this year, including four half-point increases in a row.
- Losses in oil have been reversed. after reports that Yemeni rebels in Saudi Arabia were ratcheting up attacks on energy and power plants. After dipping below $109 a barrel earlier in the day, crude in New York rose near $113 a barrel.
- The pace of rate rises, according to Fed's Williams, should be dictated by the data, including a half-percentage-point tightening if necessary.
- Russian stocks dipped, undoing most of the gains earned the previous session when the market reopened after a record-breaking suspension, with government attempts to prevent a selloff helping to limit the losses.
