
Rising Treasury yields and inflation fears drove a broad selloff, leaving the S&P 500 down nearly 2% for the week
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Rising Treasury yields and inflation fears drove a broad selloff, leaving the S&P 500 down nearly 2% for the week

The president's repeated calls for lower interest rates are falling on deaf ears amid elevated inflation that's primarily been driven by his policies.

Promising news from a major drug company, reports of some dovish Fed committee members, and a government bond buyback announcement combined forces to boost markets on Wednesday. The S&P 500 and the Nasdaq Composite also closed up 0.2%. The Treasury Department’s announcement this morning also helped calm the bond market—though for how long remains to be seen after the U.S. debt crossed a $40 trillion threshold on Wednesday.

<body><p>VIDEO SHOWS: n/a</p><p>STORY: Wall Street's main indexes closed modestly higher on Wednesday, with the Dow, S&P 500 and the Nasdaq all adding less than a quarter of a percent.</p><p>Risk appetite got a boost from easing government bond yields. The yield on the 30-year Treasury bond fell a day after hitting its highest level since 2007. The 10-year Treasury yield also fell. The moves came after the U.S. Treasury announced it would double the size of liquidity support buyback operations for longer-dated bonds.</p><p>Adam Coons is chief investment officer at Winthrop Capital Management.</p><p>"Stocks are, you know, marginally up today. And that's really just driven by the digestion of this yield curve control. You're seeing interest rates come down, in particular long end (long-term rates) quite a bit. And so you're probably going to see markets try to use their crystal ball to determine what's coming next. And so I would expect volatility. Today seems like a day of rest to some degree. But I would say that volatility and increased volatility heading into, you know, changes in Fed policy should be the new expectation."</p><p>Investors, however, barely reacted to minutes from the Federal Reserve's July meeting, which showed deepening concern about inflation with "several" policymakers ready to raise interest rates. "Many" said a rate hike would be needed if inflation does not lower to the central bank's 2% target.</p><p>:: Archive</p><p>Stocks on the move Wednesday included Moderna which surged almost 177% after the company said its personalized mRNA cancer therapy developed with Merck cut the risk of melanoma recurrence and spread in a late-stage trial. Merck shares also jumped about 12.5% and it was the biggest gainer in the Dow.</p><p>::Marvell Technology</p><p>Shares of Marvell Technology climbed nearly 10% after the company said it will help develop Google's in-demand custom chips and has offered the search giant the right to buy a potential $12.2 billion stake.</p><p>And shares of Target rose more than 4% after the retailer raised its annual sales forecast. Lowe's shares gained even after it trimmed its annual sales growth forecast and Estée Lauder shares jumped more than 16% after the cosmetics maker forecast annual profit above Wall Street estimates.</p></body>
US equity futures were mostly flat pre-bell Wednesday as traders awaited the Federal Reserve's polic

Chip stocks were flat premarket and Nasdaq futures edged higher after the sharp rise in borrowing costs added to an AI-related selloff, dragging on blue-chip indexes across Asia.

<body><p>VIDEO SHOWS: n/a</p><p>STORY: Wall Street closed lower Tuesday with the Dow falling about a quarter of one percent, the S&P 500 slipping more than two-thirds of a percent, and the Nasdaq sliding one and a third percent. </p><p>Technology stocks dropped with semiconductors suffering the steepest declines as Middle East uncertainty pushed bond yields to multiyear peaks, feeding concerns about borrowing costs and inflation.</p><p>Gina Martin Adams, chief market strategist with HB Wealth, says she thinks bonds will remain a driving force for stocks for several months.</p><p>"I think the biggest threat to the equity market right now is the bond market, not the equity market itself. With yields rising, we have to really consider what we're willing to pay for stocks because of yields, of course, represent the discount rate for those future cash flows that equities tend to trade on. So I do think that the market is going to see its focus shift from earnings as the predominant driver of growth to potentially yields in the fall as we have limited amount of earnings information that is coming out. This could create a rockier path forward for equities, particularly relative to the very robust pace of gains that we've experienced so far this year."</p><p>Investors flocked to more defensive sectors such as healthcare and consumer staples while the rise in energy prices gave a lift to energy stocks. </p><p>Individual stocks on the move included Baidu. U.S.-listed shares of the Chinese search company plunged nearly 13% as its revenue missed estimates.</p><p>And Norwegian Cruise Line declined 3% after broker Mizuho downgraded the stock to neutral from outperform citing construction delays among other reasons.</p></body>

No matter what Kevin Warsh and the Federal Open Market Committee (FOMC) do, they won't appease everyone.
US stock futures fell on Tuesday as rising tensions between the US and Iran revived inflation concerns, with elevated oil prices adding pressure.

Wall Street kicked off the week with a flurry of bold calls on some of the market's most closely watched names, and at least one stock just scored a target price hike of more than 50 percent from a major firm.

U.S. stocks could be heading toward a tricky patch over the next two months, with midterm elections in focus, longer-dated Treasury bond yields trading at multiyear highs, and volatility readings suppressed. The equal weighted index of the is now up more than 17% for the year, volatility gauges are trading at the lowest levels since early January, and data suggest fading bets on an autumn Federal Reserve rate hike.

The longer Trumpflation remains unchecked, the bigger the consequences for Wall Street.
Dow futures were down 0.09%, while the S&P 500 futures climbed 0.09% and the Nasdaq-100 futures were up 0.25% at the time of writing.

Lowe’s, TJX, Alibaba, and Toll Brothers will also report earnings. On the economic front, we’ll see Fed minutes, housing-market data, and readings on manufacturing and services activity.

President Trump's victory lap on inflation may be a bit premature.

Reforming the Federal Reserve comes at a potentially steep cost to an already expensive stock market.
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