Overview
- Markets reversed late in the session after Federal Reserve projections and Chairman Kevin Warsh’s press conference increased the chance of a rate hike, pushing Treasury yields higher and hurting growth stocks.
- Major indexes closed notably lower with the S&P 500 down about 1.2%, the Nasdaq off roughly 1.3%, and the Dow falling near 1% after earlier gains evaporated.
- U.S. reports of a proposed U.S.–Iran framework that would allow toll-free passage through the Strait of Hormuz for 60 days eased oil-supply fears and helped drive oil prices lower while gold rose.
- Nvidia sold a record-sized high-grade bond package that was reported to attract very strong demand, underlining robust investor appetite for top-rated corporate debt even as equities weakened.
- Traders should expect continued volatility as investors weigh Fed guidance, changing geopolitical risk, and the impact of higher yields on tech valuations, consumer borrowing costs, and corporate financing.