The S&P 500 swung between gains and losses in thin trading, with volumes about 20% below the 30-day average exacerbating price swings. Treasuries gained, with two-year rate, the most sensitive to changes in interest rates, slipping seven basis points.
In the latest comments from Federal Reserve officials, San Francisco Fed President Mary Daly said policy makers may need to take the key rate a little above 3% by year-end.In corporate news, Cisco Systems rose after issuing an upbeat forecast for quarterly sales as chip-supply shortages ease and the company is able to fill more orders. Bed Bath & Beyond plunged after Ryan Cohen’s RC Ventures said it might sell as much as 7.78 million shares in the retailer.
“People are a little overly optimistic about how likely it is that we can solve the inflation problem quickly and in a way where we don’t have to include more policy and more rising rates,” Kathryn Kaminski, AlphaSimplex Group chief research strategist and portfolio manager, said on Bloomberg Television.