- During a volatile session, US stocks fluctuated between gains and losses, with technology stocks still under pressure following last week's hawkish central bank turn. Treasury yields fell as the global bond market digested the Bank of Japan's unexpected increase in its yield trading band.
- The S&P 500 finished with a modest gain, snapping a four-day losing streak. The tech-heavy Nasdaq 100 fell for the fifth day in a row, its longest losing streak since October. With few macro catalysts expected before the end of the year, swings are likely to increase, as stocks demonstrated on Tuesday.
- New economic data revealed new us Home construction continued to fall in November, and permits fell, indicating that the Fed's tightening is working. However, closing prices increased in the third quarter, and the Fed will continue to raise rates if housing prices remain high, which could be harmful to risk assets in the long run.
- Treasuries were generally down, with the 10-year yield rising to around 3.69%. Yields rose after the Bank of Japan's hawkish move sent the Yen soaring more than 4% against the Dollar at one point. Analysts believe that more losses are on the way as Japanese investors, major players in US and European debt, have a stronger incentive to bring money home.