US stocks lower, bond yields surge on rising rate bets

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Tech shares slumped after a top US policymaker signalled it would be “reasonable” for the Federal Reserve to lift rates 50 basis points in early May.

P 500 amid a widening consensus among policymakers for a 50-basis-point rate increase in May.

Interest-rate futures are almost fully priced for a half-point hike at the Fed’s May 3-4 meeting, when officials could also announce a start date for beginning to shrink their nearly-$US9-trillion balance sheet.Williams voiced confidence in the Fed’s ability to soft-land the economy -- cool price pressures without forcing a steep rise in unemployment -- and said the Fed’s forward-guidance communications around its policy plans have already got the ball rolling.

John Lynch, chief investment officer at Comerica Wealth Management, said investors are set for a reality check.“After almost two years of earnings-per-share growth at a multiple of historical averages, this year’s opening quarter is projected to deliver single digit profit growth for the first time since the fourth quarter of 2020,” Lynch said.P 500 EPS growth in the range of 8 per cent to 10 per cent, to about $US225.00 for the index in 2022.

 

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