Stock markets and Treasury yields rose on Thursday after Cleveland Federal Reserve Bank President Loretta Mester said a half-point rate hike at its January meeting was “compelling”. This followed a raft of economic data, including a hotter-than-expected January producer price index reading. Futures on the Dow Jones Industrial Average, S&P 500 and Nasdaq-100 all dropped, while the yield on the 2-year Treasury note rose 3 basis points and the 10-year Treasury yield was up 2 basis points.
Stock-index futures extended losses and Treasury yields built on a rise Thursday after Cleveland Federal Reserve Bank President Loretta Mester said she had seen a “compelling” case for a half-point rate hike at its Jan. 31-Feb. 1 meeting, when policy makers lifted the fed-funds rate by a quarter of a percentage point. That came as stocks were sliding and yields had reversed a decline following a raft of economic data, including a hotter-than-expected January producer price index reading. Futures on the Dow Jones Industrial Average
YM00,
were down 293 points, or 0.9%, while S&P 500 futures
ES00,
dropped 1.2% and Nasdaq-100 futures
NQ00,
shed 1.5%. The yield on the 2-year Treasury note
TMUBMUSD02Y,
rose 3 basis points to 4.632%, while the 10-year Treasury yield
TMUBMUSD10Y,
ws up 2 basis points at 3.831%.
