Following the comments from top Fed officials on Monday, Atlanta Fed President Raphael Bostic said the U.S. central bank does not need to raise interest rates any further, and that he sees no recession ahead.
"Everybody has one eye on the Middle East conflict and one eye on what's happening with bond yields.
The decline in bond yields is the key driver today," said John Praveen, managing director & co-chief investment officer at Paleo Leon.
"If tensions escalate bond yields might decline further because they're a safe haven but equities would sell off in that instance because of increased uncertainty and risk aversion," he said.
But the flight to safety has made Treasury yields fall enough to push up equities," Tuz said.
Persons:
Brendan McDermid, dovish, Raphael Bostic, John Praveen, Praveen, Peter Tuz, Tuz, Neel Kashkari, Christopher Waller, Sinéad Carew, Shashwat Chauhan, Ankika Biswas, Terence Gabriel, Arun Koyyur, Shounak
Organizations:
New York Stock Exchange, REUTERS, U.S . Federal Reserve, Atlanta Fed, Treasury, Chase Investment, Nasdaq, Dow Jones, Minneapolis Federal Reserve Bank, Traders, PepsiCo, Truist, Rivian, UBS, EV, Thomson
Locations:
New York City, U.S, Gaza, Paleo Leon, Charlottesville , Virginia, Israel, Minneapolis