Investor concerns increase, but an early Fed shift remains unlikely
Investors’ general sense of uncertainty (particularly over the future direction of Federal Reserve policy) continued last week, as US stock markets sank for the third time in the last four weeks. For the week, the Dow Jones Industrial Average lost 1.2% to 15,070, the S&P 500 Index declined 1.0% to 1,626 and the Nasdaq Composite sank 1.3% to 3,423. In fixed income markets, yields remained volatile, although Treasury yields bucked their recent trend by moving slightly lower over the course of the week (prices move in the opposite direction of yields). For the week, the yield on the benchmark 10-year Treasury fell from 2.17% to 2.13%.