- US stocks rose as investors adjusted their expectations in response to Federal Reserve officials indicating that interest rates will continue to rise but at a slower pace.
- The S&P 500 finished at its highest level since September 12. The Nasdaq 100 increased by more than 1%. Positive earnings from a few retailers, including Best Buy and Abercrombie & Fitch, boosted sentiment.
- Treasury yields rose, with the benchmark 10-year yield hovering around 3.76%. Oil rose on the back of an uncertain supply outlook and a European Union proposal to ease sanctions on Russian crude. The dollar's three-day rally came to an end.
- Fed officials have generally maintained their steadfast stance against inflation in recent days. Nonetheless, San Francisco Fed President Mary Daly stated that officials must be mindful of the lags in the transmission of policy changes, while her Cleveland counterpart Loretta Mester stated that she is open to moderating the size of rate hikes. The Richmond Fed Manufacturing Survey came in slightly lower than expected on Tuesday, confirming the peak inflation narrative.
