Tech Reverses US Stock Losses as Treasuries Drop: Markets Wrap

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Tech Reverses US Stock Losses as Treasuries Drop: Markets Wrap
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(Bloomberg) -- Stellar earnings reports from Microsoft Corp. and Alphabet Inc triggered an after-hours tech rally that sent US futures higher. A selloff in...

-- Stellar earnings reports from Microsoft Corp. and Alphabet Inc triggered an after-hours tech rally that sent US futures higher. A selloff in Treasuries drove benchmark yields to new highs for the year.Big Tech Surges in Late Hours on Blowout Earnings: Markets WrapJavier Milei Fuels Wild Rally That Makes Peso No. 1 in World

In the bond market, Treasuries suffered further losses, as the prospect of Federal Reserve interest-rate cuts remains a way off. Swap traders have now pushed back the timing of the first rate reduction to December. “This report was the worst of both worlds: economic growth is slowing and inflationary pressures are persisting,” said Chris Zaccarelli at Independent Advisor Alliance. “The Fed wants to see inflation start coming down in a persistent manner, but the market wants to see economic growth and corporate profits increasing.”

Investors have shown they are excited about the prospects of AI — but want tech companies to continue to focus on revenue and profit in the meantime.

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