(Bloomberg) — A week that began brimming with economic optimism ended up caving in on stock bulls, who find themselves increasingly helpless in the face of determined Federal Reserve inflation fighters.
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It was a stretch that may be remembered as the time bond investors reestablished themselves as rulers of the asset-market roost. Surging yields, whipped up by a belief Jerome Powell’s central bank will enact four half-point rate hikes by September, sent the S&P 500 to a third straight down week, only the second such stretch in 18 months.
Hawkish pronouncements by Jerome Powell’s Fed have set the table for a half-point hike at the central bank’s May meeting, with chances for three more now priced into money markets. Rates on 10-year Treasuries have jumped by more than 50 basis points this month to 2.9%, a rate of increase that Goldman Sachs strategists say usually causes distress in stocks.
Neither buoyant economic data, from housing to consumer spending,…
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