Bonds & Stocks
US Treasuries held steady after fresh readings on inflation and jobless claims were broadly in-line with expectations, offering little evidence for the Federal Reserve’s next move. Yields were one to two basis points lower across tenors Thursday morning in New York, with the benchmark 10 year trading at 4.35%. Stocks rose as Big Tech earnings delivered on optimism around the AI boom, putting Microsoft Corp. on course to become the second company to reach a $4 trillion market capitalization.
Economy
The FOMC held rates steady in a 4.25%-4.50% range for a fifth straight meeting. Governors Christopher Waller and Michelle Bowman dissented, marking the first time two board officials have dissented since 1993. Bloomberg Economics thinks most FOMC members won’t feel confident enough that inflation is moving in the right direction until late in the year, cutting only at the December meeting.
World
India is weighing options to placate the White House, including boosting US imports, and has ruled out immediate retaliation to President Donald Trump’s surprise 25% tariff threat, according to people familiar with the matter. India is considering ramping up its natural gas purchases from the US, and increasing imports of communication equipment and gold, the people said, which could help narrow India’s trade surplus with the US.