- Stocks fell another day, with Treasury yields rising amid hawkish remarks from Federal Reserve officials and swaps pricing in a 5% peak policy rate in 2023. The pound fell after Liz Truss resigned as Prime Minister of the United Kingdom.
- The fear of economic challenges is so strong that it doesn't take much to see the S&P 500 drop at least 1% after rallying by the same amount earlier in the day. This is the gauge's 16th intraday swing of that magnitude in 2022, the most for any year since the financial crisis.
- A tech-led rally in equities quickly faded Thursday after Philadelphia Fed President Patrick Harker stated that policymakers are likely to raise rates to well above 4% this year and keep them at restrictive levels, while leaving the door open to doing more if necessary. The current benchmark ranges from 3% to 3.25%. Fed Governor Lisa Cook also spoke, stating that rates must continue to rise in order to keep inflation under control.
- The latest batch of economic reports didn't provide much hope either, with sales of previously owned US homes falling for the eighth consecutive month – highlighting how rising mortgage rates are punishing the housing market. The drop is the longest since 2007, when the housing market collapse threw the economy into the Great Recession.
