Does the runup in stocks and government-bond prices have further to go?
That is the key question for investors after a rally in U.S. stock and Treasury markets. On Tuesday, the S&P 500 logged its longest winning streak in two years after rising for a seventh straight session. Meanwhile, the 10-year U.S. Treasury yield, which falls when bond prices rise, has dropped from a peak of over 5% just a few weeks ago to more like 4.6%.
With a light calendar of economic data this week, traders’ focus has turned to U.S. central bankers for hints on whether the Federal Reserve is done hiking rates. In focus today: A speech at 9:15 a.m. ET by Fed Chair Jerome Powell in Washington.
U.S. stock futures suggested the rally could pause. Contracts tied to the S&P 500 and Nasdaq-100 slipped. Dow industrials futures traded flat.
Treasury yields crept up. The 10-year yield traded around 4.6%, up from 4.570% on Tuesday.
The U.S. dollar rose for a third straight day. And the euro weakened after data showed German inflation fell to its lowest rate in more than two years.
International stock markets broadly declined. Hong Kong’s Hang Seng Index and Japan’s Nikkei 225 both fell, as did the Stoxx Europe 600.
Up ahead: Earnings from companies including Walt Disney, Lyft and the meme stock AMC Entertainment, which report after the closing bell. In Europe, Bank of England Gov. Andrew Bailey is also due to speak Wednesday.