U.S. stocks bounce back; bond yields climb on Fed bets
BNN Bloomberg
Stocks saw small moves as the possibility of further Federal Reserve policy tightening lifted Treasury yields and investors stayed on the sidelines amid bank earnings.
The S&P 500 erased losses in afternoon New York trading. The tech-heavy Nasdaq 100 underperformed major equity benchmarks. Two-year rates climbed to around 4.2 per cent as investors scaled back expectations for rate cuts later in the year.
Richmond Fed President Thomas Barkin said he wants to see more evidence that U.S. inflation is easing back to the central bank's goal of two per cent. New York state manufacturing activity unexpectedly expanded in April for the first time in five months as new orders and shipments snapped back.
Charles Schwab Corp. rose as executives said the firm can weather the turmoil roiling U.S. banks, while pausing stock buybacks in response to the industry's worst crisis since 2008. State Street Corp. fell as it reported clients retreated from its investment products.
