Stocks Gain, Treasuries Curve Flattens After Fed: Markets Wrap
- Beijing moves to calm Evergrande fears; commodities stabilize
- Financials and energy sectors lead the S&P 500 higher
WATCH: Peter Oppenheimer at Goldman Sachs explains why a 10% correction would be a good time to get back into the market.
Source: BloombergStocks closed higher and the Treasury yield curve flattened after Federal Reserve officials signaled they would probably begin tapering their bond-buying program soon. The dollar strengthened versus its major peers, while oil gained.
The S&P 500 had jumped earlier, rising for the for the first time in five trading sessions, as concerns about China Evergrande Group’s debt woes eased. The benchmark index rose 1%, the biggest-one day increase since July. Shorter-maturity Treasury notes fell while longer-maturity debt edged higher, flattening the yield curve, after revisions to Fed’s dot-plot forecasts for fed funds target showed a 2022 median of 0.25%, up from 0.125% prior, while 2023 rate forecasts were also dragged higher.