Rising yields and a stronger USD erased weekly gains for US equities as inflation concerns resurfaced after Powell’s Fed exit.
US Treasury yields climbed sharply, with the 2-year note rising 8.7 basis points to 4.079%, its highest since March 2025. The 10-year yield jumped 13.8 basis points to 4.597%, the highest since May 2024, amid renewed inflation worries following Fed Chair Powell’s departure.
Major US indices closed lower, wiping out weekly gains as higher yields and a stronger USD weighed on markets. European shares also fell, while gold and silver declined, with silver breaking its 100-day moving average. Industrial production for April rose 0.7%, exceeding estimates.
The NY Fed manufacturing index surged to 19.6 in May, well above expectations, while Canada’s housing starts reached 279.3K, surpassing forecasts. Oil prices and yields rose as geopolitical tensions persisted.