Fed's two rate hikes don't faze markets

This month the Fed surprised by moving its dot plot for 2023 to include two rate hikes - a hawkish divergence from the one rate hike that markets were expecting would be signalled.

This moves forward the timeframe for interest rates to rise, as inflation expectations increase for this year. However, the real surprise was that investors did not react more strongly; while markets did sell off slightly during the week of the release, equities bounced back. Despite the projection: The US 10-year Treasury yield in fact moved down over the month, settling at 1.5% The S&P 500 continued its upward momentum, gaining 2.3% (USD) over the month and reached an all-time high Europe continued its move up with the Euro Stoxx 50 returning 0.7% (EUR) US Services PMIs p...