{"id":2248,"date":"2025-02-19T00:19:00","date_gmt":"2025-02-19T05:19:00","guid":{"rendered":"https:\/\/sharewatch.com\/wp\/2025\/02\/19\/stocks-edge-lower-as-t-note-yields-rise-on-hawkish-fed-comments\/"},"modified":"2025-02-19T00:19:00","modified_gmt":"2025-02-19T05:19:00","slug":"stocks-edge-lower-as-t-note-yields-rise-on-hawkish-fed-comments","status":"publish","type":"post","link":"https:\/\/sharewatch.com\/wp\/2025\/02\/19\/stocks-edge-lower-as-t-note-yields-rise-on-hawkish-fed-comments\/","title":{"rendered":"Stocks Edge Lower as T-note Yields Rise on Hawkish Fed Comments"},"content":{"rendered":"<div class=\"layout__region nsdq-l-grid__item syndicated-article-body\">\n<section class=\"jupiter22-c-article-body\">\n<div class=\"body\">\n<div class=\"body__content\">\n<p>The\u00a0S&#038;P 500 Index ($SPX) (SPY) Tuesday fell by -0.04%,\u00a0the\u00a0Dow Jones Industrials Index ($DOWI)\u00a0(DIA) fell by -0.17%, and the\u00a0Nasdaq 100 Index ($IUXX) (QQQ) fell by -0.13%.\u00a0 March E-mini S&#038;P futures (ESH25) rose +0.05%, and March E-mini Nasdaq futures (NQH25) fell by -0.03%.\u00a0<\/p>\n<p>Stocks saw support Tuesday from hopes for an end to the Russian-Ukraine war after top US and Russian officials met in Saudi Arabia to discuss the war and normalizing relations between the US and Russia.\u00a0 Meanwhile, Ukrainian President Zelenskiy said Ukraine won\u2019t recognize \u201cany agreements about us without us.\u201d\u00a0 US officials said the peace talks were \u201cexploratory.\u201d<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-HCk\"  class=\"btf-bodymidpagetwothirdswidth-1\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-HCk')) {             googletag.display('js-dfp-tag-HCk');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p>However, stocks were undercut by a +7 bp rise in the 10-year T-note yield and by hawkish Fed comments.\u00a0 Fed Governor Waller said on Monday that the recent economic data supports keeping interest rates on hold until more progress is seen on inflation. \u00a0\u00a0On the dovish side, he said that the CPI may be subject to seasonal adjustment problems and that if inflation behaves as it did in 2024, the Fed can get back to cutting \u201cat some point this year.\u201d<\/p>\n<p>Meanwhile, San Francisco Fed President Mary Daly said on Tuesday that monetary policy needs to remain restrictive until there is more progress on inflation.\u00a0 She said that inflation will continue to improve but will take longer than anyone wants.\u00a0 She also said the Fed should take its time to assess any monetary policy changes until the net impact of the Trump administration\u2019s policies becomes clearer.<\/p>\n<p>On the Fed front, the markets are waiting for Wednesday\u2019s release of the January 28-29 FOMC meeting minutes.\u00a0 The FOMC at that meeting left its federal funds target range unchanged at 4.25-4.50%, standing pat after cutting the funds rate by a total of 100 bp in second half of 2024.<\/p>\n<p>Bullish sentiment is very strong and fund managers\u2019 cash levels are at the lowest level since 2010, which might suggest a toppy market after the 60% rally in global stocks seen since late 2022.\u00a0 A survey by Bank of America found that global stocks are the most popular asset class with Investors and that investors are willing to take the most risk in 15 years.\u00a0The survey showed that 89% of respondents said that US equities are overvalued.<\/p>\n<p>Tuesday\u2019s Feb Empire manufacturing index rose to 5.7 from -12.6 in Jan, substantially stronger than market expectations for a rise to zero.<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-fLw\"  class=\"btf-bodymidpagetwothirdswidth-2\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-fLw')) {             googletag.display('js-dfp-tag-fLw');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p>The NAHB US homebuilder confidence index fell by -5 points to a 5-month low of 42.\u00a0 Negative factors for homebuilders include continued high mortgage rates and expectations for higher construction costs due to inflation and tariffs.<\/p>\n<p>The markets are discounting the chances at 2% for a -25 bp rate cut at the next FOMC meeting on March 18-19.<\/p>\n<p>Overseas stock markets Tuesday were mixed.\u00a0 The\u00a0Euro Stoxx 50 Tuesday closed up +0.25%, adding to Monday\u2019s gain of +0.48%.\u00a0 China\u2019s Shanghai Composite Index on Tuesday closed down -0.93% after Monday\u2019s rise of +0.27%.\u00a0 Japan\u2019s Nikkei Stock 225 on Tuesday closed up +0.25%, adding to Monday\u2019s gain of +0.06%.<\/p>\n<p><strong>Interest Rates<\/strong><\/p>\n<p>March 10-year T-notes (ZNH25) Tuesday fell by -16.5 ticks.\u00a0 The 10-year T-note yield rose by +7.4 bp to 4.550%.\u00a0 March T-note prices fell on hawkish Fed comments, which dampened hopes for a near-term FOMC rate cut.\u00a0 T-note prices were also pressured by higher European bond yields, driven higher in part by ideas that European defense spending will need to rise to counter Russia.<\/p>\n<p>European government bond yields are higher.\u00a0 The 10-year German bund yield rose by +0.5 bp to 2.493%, adding to Monday\u2019s rise of +5.8 bp.\u00a0 The 10-year UK gilt yield rose by +3.1 bp to 4.558%, adding to Monday\u2019s rise of +2.7 bp.\u00a0<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-_eE\"  class=\"btf-bodymidpagetwothirdswidth-3\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-_eE')) {             googletag.display('js-dfp-tag-_eE');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p>Swaps are discounting the chances at 98% for a -25 bp rate cut by the ECB at the March 6 policy meeting.<\/p>\n<p><strong>US Stock Movers<\/strong><\/p>\n<p>Chip stocks Tuesday provided support for the broader market.\u00a0 Intel (INTC) soared by more than +16% and topped the Nasdaq 100 leaderboard on a report by the Wall Street Journal that TSMC and Broadcom are considering deals involving the breakup of Intel.\u00a0 Bloomberg reported last week that the Trump administration is suggesting that TSMC take a controlling stake in Intel\u2019s factories. \u00a0Micron Technology (MU)\u00a0rose by more than +7%, GlobalFoundries (GFS) rose by more than +6%, Lam\u00a0Research (LRCX) rose by more than +4%, and\u00a0Microchip Technology (MCHP) rose by more than +3%.<\/p>\n<p>Holding back tech stocks on Tuesday was the -3% decline in Meta Platforms (META) and -1% drop in Amazon (AMZN).\u00a0 Alphabet (GOOG), Tesla (TSLA), and Apple (AAPL) all closed lower.\u00a0 Of the Magnificent Seven stocks, only Nvidia (NVDA) and Microsoft (MSFT) closed higher.<\/p>\n<p>Chinese stocks listed in the US saw support after Chinese President Xi Jinping met publicly with Chinese tech company leaders, including Alibaba co-founder Jack Ma, suggesting that Chinese officials have ended their regulatory crackdown on the tech sector and are now looking to support the sector as China faces a revived trade war with the US.\u00a0 PDD Holdings (PDD) was on the Nasdaq 100 leaderboard with a +3.5% rally.\u00a0 Alibaba (BABA) closed up +1.74%.\u00a0<\/p>\n<p>Delta Airlines (DAL) fell -1.61% after a Delta jet flipped over on the runway in Toronto.<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-eNE\"  class=\"btf-bodymidpagetwothirdswidth-4\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-eNE')) {             googletag.display('js-dfp-tag-eNE');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p>Medtronic (MDT) fell more than -7% after reporting a revenue miss for fiscal Q3.\u00a0<\/p>\n<p>Southwest Airlines (LUV) fell -1% despite saying it would cut 1750 management jobs to reduce expenses.<\/p>\n<p>Conagra Brands (CAG) fell more than -5% after management cut its fiscal 2025 guidance.<\/p>\n<p><strong>Earnings Reports (2\/19\/2025)<\/strong><\/p>\n<p>Garmin Ltd (GRMN), Charles River Laboratories Int (CRL), Trimble Inc (TRMB), Analog Devices Inc (ADI), American Water Works Co Inc (AWK), CF Industries Holdings Inc (CF), Host Hotels & Resorts Inc (HST), ANSYS Inc (ANSS), Nordson Corp (NDSN), Texas Pacific Land Corp (TPL).<\/p>\n<div class=\"taboola-placeholder\">\n<div id=\"taboola-mid-article-thumbnails\"><\/div>\n<\/div>\n<p>                 <script type=\"text\/javascript\">                     !function (e, f, u) {                     e.async = 1;                     e.src = u; f.parentNode.insertBefore(e, f);                     }(document.createElement('script'), document.getElementsByTagName('script')[0], '\/\/cdn.taboola.com\/libtrc\/nasdaq-nasdaq\/loader.js');                     window._taboola = window._taboola || [];                     _taboola.push({                       mode: 'thumbnails-a-mid',                       container: 'taboola-mid-article-thumbnails',                       placement: 'Mid Article Thumbnails',                       target_type: 'mix'                     });                     _taboola.push({article:'auto', url:''});                 <\/script><i>     On the date of publication,      Rich Asplund              did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy          here. <\/i><\/p>\n<p> More news from Barchart <\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-NgU\"  class=\"btf-bodymidpagetwothirdswidth-5\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-NgU')) {             googletag.display('js-dfp-tag-NgU');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<ul>\n<li>Warren Buffett Sold This High-Yield Dividend Stock. Should You?<\/li>\n<li>Is This The Best Dow Stock to Buy Now to Invest in Quantum Computing?<\/li>\n<li>Analysts: Palantir Stock Could Be the Best Buy for the New DOGE Era in Washington<\/li>\n<li>Wedbush: This Little-Known AI Stock Could Be the Next Palantir<\/li>\n<\/ul>\n<div class=\"video__inline\">\n<div class=\"video-placeholder\"><\/div>\n<\/div>\n<p>                       <script type=\"text\/javascript\">                       \/\/ Run Ex.co Script and mid-article placement                      (function (d, s, n) {                          var js, fjs = d.getElementsByTagName(s)[0];                          js = d.createElement(s);                          js.className = n;                          js.src = \"http:\/\/player.ex.co\/player\/4c49b82f-103d-41ce-9191-ffa4d1f737fb\";                          fjs.parentNode.insertBefore(js, fjs);                      }(document, 'script', 'exco-player'));                      \/\/ Ex.co placeholder div                      var element = document.getElementsByClassName('video-placeholder')[0];                      var excoDiv = document.createElement('div');                      excoDiv.id = '4c49b82f-103d-41ce-9191-ffa4d1f737fb';                      if (element && document.getElementById('4c49b82f-103d-41ce-9191-ffa4d1f737fb') == undefined) {                         element.append(excoDiv);                      }                     <\/script>                                                                     <\/p>\n<p class=\"body__disclaimer\">The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<p>        <script type=\"text\/javascript\">   \/\/ add oddAd class to every odd instance of body .ads__inline for different placeholder styles   let articleAds = document.querySelectorAll('.ads__inline');   for (let i = 0, len = articleAds.length; i < len; i++) {     \/\/ Do the below only if the curent count is less than 12     if ((i < 12) &#038;&#038; (i % 2 === 0)) {       articleAds[i].className += ' oddAd';     }   } <\/script>                                               <\/p>\n<div class=\"jupiter22-c-tags jupiter22-c-tags-default\">\n<h3 class=\"jupiter22-c-tags-title\">         Tags       <\/h3>\n<div class=\"jupiter22-c-tags-container\">Stocks<\/div>\n<\/p><\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The\u00a0S&#038;P 500 Index ($SPX) (SPY) Tuesday fell by -0.04%,\u00a0the\u00a0Dow Jones Industrials Index ($DOWI)\u00a0(DIA) fell by -0.17%, and the\u00a0Nasdaq 100 Index ($IUXX) (QQQ) fell by -0.13%.\u00a0 March E-mini S&#038;P futures (ESH25) rose +0.05%, and March E-mini Nasdaq futures (NQH25) fell by -0.03%.\u00a0 Stocks saw support Tuesday from hopes for an end to the Russian-Ukraine war after [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2249,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ocean_post_layout":"","ocean_both_sidebars_style":"","ocean_both_sidebars_content_width":0,"ocean_both_sidebars_sidebars_width":0,"ocean_sidebar":"","ocean_second_sidebar":"","ocean_disable_margins":"enable","ocean_add_body_class":"","ocean_shortcode_before_top_bar":"","ocean_shortcode_after_top_bar":"","ocean_shortcode_before_header":"","ocean_shortcode_after_header":"","ocean_has_shortcode":"","ocean_shortcode_after_title":"","ocean_shortcode_before_footer_widgets":"","ocean_shortcode_after_footer_widgets":"","ocean_shortcode_before_footer_bottom":"","ocean_shortcode_after_footer_bottom":"","ocean_display_top_bar":"default","ocean_display_header":"default","ocean_header_style":"","ocean_center_header_left_menu":"","ocean_custom_header_template":"","ocean_custom_logo":0,"ocean_custom_retina_logo":0,"ocean_custom_logo_max_width":0,"ocean_custom_logo_tablet_max_width":0,"ocean_custom_logo_mobile_max_width":0,"ocean_custom_logo_max_height":0,"ocean_custom_logo_tablet_max_height":0,"ocean_custom_logo_mobile_max_height":0,"ocean_header_custom_menu":"","ocean_menu_typo_font_family":"","ocean_menu_typo_font_subset":"","ocean_menu_typo_font_size":0,"ocean_menu_typo_font_size_tablet":0,"ocean_menu_typo_font_size_mobile":0,"ocean_menu_typo_font_size_unit":"px","ocean_menu_typo_font_weight":"","ocean_menu_typo_font_weight_tablet":"","ocean_menu_typo_font_weight_mobile":"","ocean_menu_typo_transform":"","ocean_menu_typo_transform_tablet":"","ocean_menu_typo_transform_mobile":"","ocean_menu_typo_line_height":0,"ocean_menu_typo_line_height_tablet":0,"ocean_menu_typo_line_height_mobile":0,"ocean_menu_typo_line_height_unit":"","ocean_menu_typo_spacing":0,"ocean_menu_typo_spacing_tablet":0,"ocean_menu_typo_spacing_mobile":0,"ocean_menu_typo_spacing_unit":"","ocean_menu_link_color":"","ocean_menu_link_color_hover":"","ocean_menu_link_color_active":"","ocean_menu_link_background":"","ocean_menu_link_hover_background":"","ocean_menu_link_active_background":"","ocean_menu_social_links_bg":"","ocean_menu_social_hover_links_bg":"","ocean_menu_social_links_color":"","ocean_menu_social_hover_links_color":"","ocean_disable_title":"default","ocean_disable_heading":"default","ocean_post_title":"","ocean_post_subheading":"","ocean_post_title_style":"","ocean_post_title_background_color":"","ocean_post_title_background":0,"ocean_post_title_bg_image_position":"","ocean_post_title_bg_image_attachment":"","ocean_post_title_bg_image_repeat":"","ocean_post_title_bg_image_size":"","ocean_post_title_height":0,"ocean_post_title_bg_overlay":0.5,"ocean_post_title_bg_overlay_color":"","ocean_disable_breadcrumbs":"default","ocean_breadcrumbs_color":"","ocean_breadcrumbs_separator_color":"","ocean_breadcrumbs_links_color":"","ocean_breadcrumbs_links_hover_color":"","ocean_display_footer_widgets":"default","ocean_display_footer_bottom":"default","ocean_custom_footer_template":"","ocean_post_oembed":"","ocean_post_self_hosted_media":"","ocean_post_video_embed":"","ocean_link_format":"","ocean_link_format_target":"self","ocean_quote_format":"","ocean_quote_format_link":"post","ocean_gallery_link_images":"on","ocean_gallery_id":[],"footnotes":""},"categories":[18],"tags":[],"class_list":["post-2248","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock","entry","has-media"],"_links":{"self":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts\/2248","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/comments?post=2248"}],"version-history":[{"count":0,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts\/2248\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/media\/2249"}],"wp:attachment":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/media?parent=2248"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/categories?post=2248"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/tags?post=2248"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}