- US treasuries fell and stocks fell after Federal Reserve officials signalled that the central bank will continue to raise interest rates until inflation is under control.
- Treasury yields increased across the yield curve, with 10-year rates rising as much as 20 basis points to 2.77%. The yen, on track for its fifth daily gain, fell as the dollar reversed four days of losses amid a sharp shift in risk sentiment.
- The S&P 500 fell for the second day in a row as Nancy Pelosi's visit to Taiwan prompted China to announce missile tests, despite her claim that her visit would not change long-standing US policy in the region. The Nasdaq 100 also fell on the day.
- Both indexes swung between gains and losses throughout the session as markets remained tense, with geopolitical tensions simmering and Fed officials signalling that a policy shift was unlikely.
- Investors were kept on their toes by new economic data. According to recent data, US job openings in June fell to a nine-month low, indicating that labour demand is moderating as economic pressures mount. The job market has been a bright spot in an economy that is otherwise losing steam and may be heading for a recession.
