Stocks slip as worries about high rates weigh on Wall Street

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Wall Street continued to reel before markets opened after strong U.S. jobs data last week fanned fears of more interest rate hikes. wallstreet kprc2 click2houston us

FILE - A trader looks over his cell phone outside the New York Stock Exchange, Wednesday, Sept. 14, 2022, in the financial district of Manhattan in New York. – Wall Street shaved off more of its strong start to the year on Monday, adding to losses from the end of last week driven by worries about higher interest rates and inflation.stunningly strong report

The yield on the two-year Treasury, which tends to track expectations for the Fed, leaped. It zoomed to 4.47% from 4.29% late Friday and just 4.10% the day before. That’s a significant move for the bond market. The 10-year yield, which helps setHigher rates slow the economy by design, in hopes of limiting the purchases by households and businesses that can fuel inflation. But they also raise the risk of a severe recession and hurt markets in the meantime.

Investors came into the year extremely skeptical about such stocks, and once they got a spark higher, momentum for them quickly snowballed. Analysts have said the rebound was more about improvements in sentiment than any changes in the economy or other fundamentals. Besides Powell, markets are also waiting to hear from nearly 100 companies in the S&P 500 this week about how much profit they made during the final three months of 2022.

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