Stock Markets In U.S. Slip After Fed Minutes

Stock Markets In U.S. Slip After Fed Minutes remarfu

“What’s occupying the mind of Stock Markets now is this resilient growth, which is likely to mean more resilient inflation,” said Grace Peters, an investment strategist at JPMorgan Private Bank.

The yield on the benchmark 10-year Treasury note ticked down to 3.922%,

After reaching 3.953% Tuesday, the highest end-of-day level since November.

Yields have been racing toward 4% lately, stoking volatility across markets and leading some investors to ponder how high they will go.

“That is the million dollar question,”

said Anand Omprakash, head of derivatives and quantitative strategy at Elevation Securities, of the path of Treasury yields.

Stock and bond markets had a muted reaction to the latest minutes, which showed that most Fed officials thought slowing the pace of interest-rate increases at their meeting three weeks ago offered the best way to balance the risks of doing too much or too little to combat inflation.

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Some investors who jumped back into the market to start the year have taken a more cautious stance lately—hedging their stock bets or re-evaluating portfolios, said Matthew Tym, head of equity derivatives trading at Cantor Fitzgerald.

“There’s finally getting to be some fear in the marketplace,” Mr. Tym said.

Shares of Palo Alto Networks jumped nearly 13% after the cybersecurity company swung to a profit last quarter and raised its guidance for the full fiscal year. CoStar declined 5.1% after it said it wouldn’t buy a real-estate business from News Corp, the parent of The Wall Street Journal, and issued a weaker-than-expected first-quarter forecast.

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Coinbase shares lost 2.4% after the company reported earnings but ended the day down 1.4%.

Oil prices edged lower. The most actively traded futures contract for Brent crude, the global benchmark, retreated 3% to trade at $80.60 a barrel.

Overseas, the pan-continental Stoxx Europe 600 fell 0.3%.

In Asia, benchmarks declined. The Shanghai Composite Index and Hong Kong’s Hang Seng Index both slipped 0.5%. Japan’s Nikkei 225 lost 1.3%.

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