- As treasuries rose, US stocks paused their longest advance since 2017, bringing key indexes lower from all-time highs.
- The S&P 500 index dipped for the first time in nine sessions, driven by a decrease in banking stocks, which were hit by a drop in the 10-year yield, which fell to its lowest level in seven weeks. Following a tweet by investor Michael Burry, Tesla dropped as much as 13%.
- PayPal dropped after the company's guidance fell short of expectations. General Electric soared after announcing that it would be split into three businesses.
- Investors are weighing robust earnings, easing travel restrictions and US infrastructure expenditure against the possibility of sustained inflation, which might lead to tighter monetary policy. The producer price index rose in October, adding to concerns about inflationary pressures in the economy.
- On Wednesday, new consumer price data could contribute to the monetary policy debate, which saw another surprise on Tuesday with reports that Fed's Brainard was interviewed by Biden as he considers whether to re-appoint Fed's Powell.
- In the meantime, positioning adjustments have spurred advances in long-end Treasuries, bringing the 30-year yield to its lowest level since July. The yield on the US 10-year note has dropped to 1.44%.
- After rising beyond $68,000 for the first time, bitcoin's gains were trimmed back. After a bearish report, crude oil jumped more than 3% in New York. Gold Rose.
