Stocks edge up amid surging Treasury yields as Powell warns inflation 'too high': Stock market news today

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Investors were treading carefully as the US 10-year yield nudged 5%, with more earnings and a speech by the Fed's Jerome Powell in focus.

) closed in on reaching 5% for the first time in 16 years, while the 2-year yield — seen as a guide to interest-rate expectations — jumped to its highest since 2006 around 5.24%., signaling that the Fed intends to keep moving forward on its rate-hiking path as economic growth remains strong.

Investors currently expect the central bank to leave its benchmark interest rate unchanged at the November meeting, staying in the range of 5.25%-5.50%. He acknowledged that shorter-term measures of core inflation — inflation measures that strip out volatile food and energy prices — over the most recent three and six months are now running below 3%.

For El-Erian, Fed policy is no longer an anchor."It's too backward-looking," he said."So this is really a hard time for the bond market. And we need stability. We desperately need stability." "Our current forecast is for no additional rate hikes, and we think a hike at the November 1 meeting is unlikely," Vanden Houten wrote in a note on Thursday."The recent strength of the data, including the September reports on employment and retail sales, have raised the odds of another hike at a later meeting and make it more likely that the Fed will start cutting rates later than we expect next year.

"While we mostly paused price increases as we rolled out paid sharing, our overall approach remains the same — a range of prices and plans to meet a wide range of needs, and as we deliver more value to our members, we occasionally ask them to pay a bit more," the company said in its shareholder letter.

 

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