- Stocks and bonds fell after Wall Street lost faith that a pause in the Federal Reserve's rate hike cycle was a foregone conclusion.
- After betting on a pause earlier in the week, swap traders are now pricing in a one-in-ten chance of another interest rate hike at the next Fed meeting in June.
- The S&P 500 fell 0.3% for the week, while the Nasdaq 100 gained 0.6%. Gains were wiped out early in the session Friday after a preliminary University of Michigan sentiment survey revealed that consumers expect prices to rise at a 3.2% annual rate over the next five to ten years, a 12-year high. Bank stocks were down, with PacWest Bancorp down 3.0% and JPMorgan down 1.4%.
