# Shares choppy, U.S. yields fall as investors digest Fed minutes Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-08-18 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Global equity markets choppy as U.S. Treasury yields fall Meta Description: Amid Fed's hawkish stance on inflation, markets remain bearish on looming recession. Understand the impact of Fed minutes on stocks and Treasury yields. URL: https://financedigest.com/shares-choppy-u-s-yields-fall-as-investors-digest-fed-minuteshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-08-18t062953z3lynxmpei7h02trtroptp4global-markets-japan-1736815434178-compressed.jpg) By Chibuike Oguh NEW YORK (Reuters) – Global equity markets were choppy and U.S. Treasury yields fell on Thursday, as [uncertainty over the pace of interest rate hikes](https://www.financedigest.com/analysis-investors-stick-to-bets-on-early-end-to-ecb-hikes-as-uncertainty-grows.html "Analysis-Investors stick to bets on early end to ECB hikes as uncertainty grows") prevailed among investors after the Federal Reserve’s meeting minutes showed officials were determined to curb rising prices. Markets have remained bearish [amid concerns](https://www.financedigest.com/shares-fall-with-oil-prices-amid-concerns-about-u-s-fed-rate-hikes.html "Shares fall with oil prices amid concerns about U.S. Fed rate hikes") about a looming recession, even though Fed officials indicated in the minutes of their July meeting released on Wednesday that they would adopt a less aggressive stance if inflation starts to recede. The markets are still trying to figure out the Fed minutes,” causing volatility, said Charles Self, chief [investment officer at Tandem Wealth Advisors](https://www.financedigest.com/5-tips-choosing-right-investment-advisor.html "5 tips for choosing the right investment advisor") in Appleton, Wisconsin. The [minutes were uniformly hawkish in our view,”](https://www.financedigest.com/forest-view-homes-minutes-from-the-heart-of-constable-country.html "Forest View – Homes Minutes From The Heart Of Constable Country") Self added. It’s [clear that among all the voting members that curing inflation](https://www.financedigest.com/german-inflation-eased-in-november-but-too-soon-for-all-clear.html "German inflation eased in November but too soon for ‘all-clear’") is the No. 1 choice and they’re going to do whatever is necessary as far as [raising rates](https://www.financedigest.com/boe-raises-rates-again-as-investors-look-towards-end-of-hikes.html "BoE raises rates again as investors look towards end of hikes") to get there. We think they’re using the [labor market](https://www.financedigest.com/u-s-job-growth-surges-in-july-as-labor-market-defies-recession-fears.html "U.S. job growth surges in July as labor market defies recession fears") as cover. MSCI’s gauge of [stocks](https://www.financedigest.com/mutual-funds-vs-stocks-which-is-better.html "stocks") in 50 countries across the globe shed 0.23%. The pan-European STOXX 600 index, however, edged up 0.39%. U.S. Treasury yields edged lower as [investors continued](https://www.financedigest.com/southampton-development-continues-to-excite-local-investors.html "SOUTHAMPTON DEVELOPMENT CONTINUES TO EXCITE LOCAL INVESTORS") to digest the Fed meeting minutes. Benchmark 10-year notes were down to 2.8713%, from 2.895% on Wednesday. Two-year notes retreated to 3.2246%, from 3.295%. The [yield curve between two- and 10-year Treasury](https://www.financedigest.com/wall-street-drops-treasury-yields-gyrate-on-fed-chairman-powells-remarks.html "Wall Street drops, Treasury yields gyrate on Fed Chairman Powell’s remarks") notes, widely viewed as an indicator of impending recession, remained inverted at minus 38 basis points on Thursday. Since the Fed’s July 27 meeting, the two-year yields have been up 43 basis points, meaning that the [bond market](https://www.financedigest.com/stocks-up-bond-yields-fall-as-markets-mull-a-fed-policy-pause.html "Stocks up, bond yields fall as markets mull a Fed policy pause") thinks they’re going to raise rates higher for a longer period of time, whereas the stock market has been up 5%, meaning the market thinks they’ll raise rates relatively quickly and maybe even decrease rates next year,” Self added. Well, I think the [bond market](https://www.financedigest.com/britains-bond-market-turmoil.html "Britain’s bond market turmoil") is usually right. MAJOR INDEXES On [Wall Street](https://www.financedigest.com/weary-wall-street-cheers-improved-consumer-confidence.html "Weary Wall Street cheers improved consumer confidence"), all major indexes were trading lower, driven by a selloff in stocks in the healthcare, financials, consumer discretionary and consumer staples sectors. The Dow Jones [Industrial Average](https://www.financedigest.com/average-annual-uk-grocery-bill-highest-since-at-least-2008-industry-data.html "Average annual UK grocery bill highest since at least 2008 -industry data") fell 0.33% to 33,867.17, the S&P 500 lost 0.11% to 4,269.42, and the Nasdaq Composite dropped 0.05% to 12,931.39. [Oil prices](https://www.financedigest.com/oil-prices-steady-as-news-of-saudi-russia-meeting-calms-investors.html "Oil prices steady as news of Saudi, Russia meeting calms investors") gained about 2% as robust U.S. fuel consumption [data and an expected drop in Russian supply later in the year offset concerns that slowing economic](https://www.financedigest.com/dollar-skids-after-soft-u-s-economic-data-impact-of-opec-cuts-fades.html "Dollar skids after soft U.S. economic data; impact of OPEC+ cuts fades") growth could undercut demand. Brent futures rose 2.26% to $95.77 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 2.04%, to $89.91. The U.S. dollar index hit a three-week high as [investors reevaluated Wednesday’s Fed](https://www.financedigest.com/oil-steadies-after-dipping-on-china-outlook-investors-await-fed-clues.html "Oil steadies after dipping on China outlook; investors await Fed clues") minutes as more hawkish than originally interpreted and after data showed solid U.S. economic momentum. The dollar index rose 0.647%, with the euro down 0.78% to $1.0101. [Gold reversed earlier gains and was lower on a firmer dollar](https://www.financedigest.com/stocks-and-gold-cheer-u-s-inflation-picture-while-dollar-slides.html "Stocks and gold cheer U.S. inflation picture, while dollar slides"), as investors looked for more economic cues that could influence rate hikes. Spot gold dropped 0.2% to $1,757.68 an ounce, while U.S. [gold futures gained](https://www.financedigest.com/global-equities-gain-as-rising-bond-yields-pressure-gold.html "Global equities gain, as rising bond yields pressure gold") 0.15% to $1,762.90 an ounce. (Reporting by Chibuike Oguh in New York; Editing by Susan Fenton and David Holmes) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---