- Bond yields rose after major central banks warned of the possibility of further interest-rate hikes, with officials signalling that they are far from ready to declare victory over inflation.
- Treasury two-year yields reached their highest level since March as Jerome Powell said the US may need one or two more rate hikes in 2023, while the Bank of England warned it may need to raise rates again after delivering a half-point increase. On economic concerns, a key section of the German yield curve inverted the most since 1992. The Norwegian krone led gains among developed currencies as officials promised more aggressive tightening.
- After struggling for direction for the majority of the session, the S&P 500 ended with a small gain, halting a three-day slide. KB Home fell due to a bleak outlook. The Nasdaq 100 index rose more than 1%, led by a rally in tech titans such as Amazon, Apple, and Microsoft.
- In economic news, unemployment benefit applications in the United States remained unchanged last week at their highest level since October 2021, indicating that the labour market is cooling slightly. As high mortgage rates continued to crimp demand and discourage owners from listing their properties, sales of previously owned homes barely increased in May.
