- As earnings came in, stocks recovered from their worst week since March. Treasuries fell after a Federal Reserve official said interest rates could stay higher for longer to tamp down inflationary pressures.
- The S&P 500 ended a four-day decline, while the Dow Jones Industrial Average gained the most in more than seven weeks. Berkshire Hathaway set a new high when its earnings beat expectations. Amazon rose following news that the company will meet with the Federal Trade Commission to avoid an antitrust lawsuit. Tesla fell after its chief financial officer resigned unexpectedly in Elon Musk's company. This is Apple longest losing streak of the year.
- Ten-year US yields have resumed their rise, which took them to their highest level since November last week. Additional rate hikes, according to Fed Governor Michelle Bowman, "will almost certainly be required." Meanwhile, Fed Bank of New York President John Williams stated that policy must remain restrictive "for some time," but that rate cuts may be necessary next year if inflation slows. Traders were also looking for clues on the policy outlook from the consumer price index, which is due later this week.
- A clear majority of investors expect a US recession before 2024, making the current stock market bull market ephemeral and favouring long-term US Treasuries. According to the latest Markets Live Pulse survey, roughly two-thirds of the 410 respondents expect the world's largest economy to contract by the end of next year.
