(Bloomberg) — Stocks saw their first back-to-back decline in six weeks, with traders weighing prospects of a slower pace of Federal Reserve rate cuts. Treasuries stabilized after a selloff that pushed benchmark yields to the highest since July.
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Wall Street pared back bets on aggressive policy easing as the US economy remains robust and Fed officials this week sounded a cautious tone over the pace of future rate decreases. Rising oil prices and the prospect of bigger fiscal deficits after the upcoming presidential election are only compounding the market’s concerns. Since the end of last week, traders have trimmed the extent of expected Fed cuts through September 2025 by more than 10 basis points.
“Of course, higher yields do not have to be negative for stocks. Let’s face it, the stock market has been advancing as these bond yields have bee rising for a full month now,” said Matt Maley at Miller Tabak +…
