Yields Jump on Rate Outlook; Stocks Pare Losses: Markets Wrap

Yields Jump on Rate Outlook; Stocks Pare Losses: Markets Wrap

(Bloomberg) -- Bond yields jumped after Federal Reserve officials signaled they'll begin dialing back the stimulus that has fueled the recovery from the pandemic.

Stocks pared earlier loses after Fed Chair Jerome Powell downplayed the risk of an immediate rate increase. The S&P 500 index had initially tumbling when policymakers disclosed that they expect two interest rate increases by the end of 2023. The dollar strengthened versus major peers. Yields on benchmark 10-year Treasury notes rose from an almost three-month low, while five- and seven-year notes fell more.

Crude oil edged lower after earlier rising as much as 1.2% in New York as the strengthening dollar reduced the appeal of commodities priced in the currency.