- Stocks rose in the final hour of New York trading, led by a rally in mega-caps such as Apple and Tesla, following the worst weekly drop since mid-June.
- Major equity benchmarks struggled to find direction on Monday as traders braced for another super-sized US rate hike amid concerns that the Fed may overtighten and increase the likelihood of a hard landing. Treasury 10-year yields hovered around 3.5%, while the two-year rate, which is more sensitive to Fed moves, reached its highest level since 2007.
- Traders believe the Fed will raise interest rates by 75 basis points. Wednesday, signal rates will rise above 4% before coming to a halt. The long-term strategy is based on the idea that the central bank will avoid the disastrous stop-go policy of the 1970s, which allowed inflation to spiral out of control. While there is a case to be made for going bigger, a surprise full-point hike could exacerbate recession fears, further depressing investor sentiment.
