Bonds & Stocks
US stocks ticked higher, even as central bankers sought to sow doubts that aggressive interest-rate cuts will materialize early next year. The S&P 500 rose 0.3% while the Nasdaq 100 climbed 0.2%, after the tech-heavy benchmark closed at a record Friday. The dollar steadied while yields on two-year Treasuries dropped, paring Friday’s jump.
Economy
The best way to play the Federal Reserve’s pivot toward monetary easing is to load up on shorter maturity debt that still provides a 4%-plus yield. That’s the overarching sentiment in the Treasury market as the Fed — with inflation falling — gears up to lower rates and support a soft landing. Meanwhile, a chunk of the nearly $6 trillion parked in money-market mutual funds has new reason to move into Treasury notes as investors fear rates on cash-like investments could soon plunge.
World
BP Plc said it will pause all shipments through the Red Sea after attacks on merchant vessels escalated, adding to signs that trade through vital waterway is grinding to a halt. BP’s decision, the most tangible sign of disruption to energy flows since the Hamas-Israel war started, comes days after all the world’s top container shipping lines said they were temporarily halting. Norway’s Equinor ASA made a similar announcement hours later.