U.S. stocks are facing renewed pressure as investors head into the Federal Reserve’s latest policy meeting, with the 10 year Treasury yield moving above 5% and crude oil prices remaining above $100 a barrel. Mark Payton reports from the Cboe trading floor as markets prepare for the Fed’s upcoming rate decision.
Volatility is also picking up, with the VIX closing higher and front month futures pointing to continued market uncertainty. Small caps have remained one of the stronger areas of the market this year, but the Russell 2000 has recently lost momentum and is now trading below its record high.
Higher oil prices and Treasury yields are once again putting inflation and interest rates at the center of the market narrative. With the Federal Reserve beginning its two day meeting, investors are watching closely for clues on the path of monetary policy and how policymakers will respond to persistent inflation pressures.