The S&P 500 shed 1%, the Dow lost 2.7%, the NASDAQ eked out a 0.2% gain, and the Russell 2000 fell by 3%. Notably, the NASDAQ was able to gain in a weak tape and is only 1% away from regaining its early July all-time highs. US Treasuries sold off across the curve in a volatile week of trade as expectations for further rate cuts were curtailed. The 2-year yield rose by fifteen basis points to 4.10%, while the 10-year yield increased by sixteen basis points to 4.23%. The significant increase in rates across the curve since the Federal Reserve decided to cut rates appears to have been dismissed by the equity markets; however, these increases in rates, alongside elevated market valuations, may have also provided reason for some profit-taking this week.
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