Interest Rates Are Hanging Over The Market Again

By Michael Msika and Jan-Patrick Barnert, Bloomberg Markets Live reporters and strategists

Expectations for fast interest-rate cuts by the US Federal Reserve are being challenged once again, bringing back some uncertainty for equity markets.

US economic data has been so good lately that the 10-year Treasury yield just climbed back above 4%, its highest level since early August. Rate-cut bets are being slashed, with swap markets pricing less than two 25 basis-point cuts by year-end, compared with nearly three just two weeks ago. That’s forcing the stock market to shift its narrative in a repeat of moves seen earlier this year.