The Nasdaq index fell 2% in a single day, and interest rate hike expectations were lowered to 25%😳
Under the double blow of strong economic data and poor performance of technology giants Tesla and Netflix, the Nasdaq index fell 2% yesterday, the largest single-day decline since April; the number of initial jobless claims this week was only 228,000, lower than expected. It was the lowest level in two months, showing that the U.S. job market remains strong, defying pessimistic expectations of an economic recession.
U.S. Treasury yields have seen a steep bearish trend, with the overall curve rising by 12 basis points, mainly affected by the trend in initial jobless claims and poor liquidity in the secondary market. Markets are pricing in a roughly 100% chance of a rate hike next week, but with the Fed nearing the end of its rate hike cycle, the odds of another hike are only about 25%.
