- Traders awaited additional hints on whether the Federal Reserve will be able to pull off a gentle landing that takes inflation down without causing a recession, as equities saw another tumultuous session.
- The S&P 500 finished higher after numerous twists and turns, powered by advances in economically sensitive stocks such as commodities producers and banks. Small-cap stocks rose as well, while technology companies underperformed. Even though the Fed's monetary-policy tightening is barely getting started, 10-year Treasury yields have stabilised amid expectations that the worst of the bond-market selloff may be over.
- Concerns about ongoing inflationary cycles and risks to global growth from increasing yields have thrown markets for a loop. Fed Chair Jerome Powell and his colleagues are likely to raise interest rates by 50 basis points on Wednesday, putting them on track to reach approximately 2.5% by the end of the year. However, it's unclear whether this will be enough to bring inflation under control, which is now running beyond the central bank's target.
- In March, employers in the United States saw record levels of job openings and workers quitting, indicating tightening labour markets that will continue to drive wages higher at a rapid pace. The figures are released ahead of Friday's payrolls report, which is expected to reveal that the US gained 390,000 jobs in April.
