Markets shrug off a $7 decline in crude oil prices ahead of this week’s Federal Reserve policy announcement.
US stocks ended mixed on Monday, with the Dow gaining while the Nasdaq dipped slightly. Crude oil futures fell sharply, settling at $82.61, a drop of over $7, but the move failed to drag down the USD or Treasury yields significantly.
The US Treasury sold $70 billion in 5-year notes at a high yield of 4.408% and $69 billion in 2-year notes. Durable goods orders for June rose 0.3%, missing expectations of 2.5%. Traders appeared focused on the upcoming Fed decision, with a 37% chance of no policy change priced in.
The USD remained mostly higher, defying typical correlations with oil declines, as investors awaited the Fed’s potentially hawkish tone. Yields held steady, supporting the greenback ahead of Wednesday’s announcement.