Stock Market Today: Dow, S&P Live Updates for March 17, 2021

Asian stocks held steady on Wednesday as investors assessed the economic recovery and the risk of a change in the Federal Reserve’s dovish policy projections. Yields on Treasuries remained near their highest levels in more than a year.

Japanese stocks changed little and China’s CSI 300 ranged between gains and losses. South Korea’s shares fell as Samsung Electronics Co. warned that it is dealing with the consequences of a “serious imbalance” in semiconductors globally. European and US stock futures fluctuated. The S&P 500 overnight broke a record run and the high-tech Nasdaq 100 posted a modest rise.

The 10-year Treasury yield stood at around 1.62% heading into the second day of the Fed meeting, after a 20-year bond. auction drew strong demand. Inflation expectations implicit in the market are at 12-year highs. The dollar was stronger against the major pairs.

Fed funds futures are trading in an earlier setting

The Fed’s policy and outlook updates to be released on Wednesday are in the spotlight as the global recovery gains ground. Rate markets are positioned for the central bank to increase borrowing costs sooner than current guidance suggests. Higher inflation expectations have boosted bond yields and caused a turnover from growth stocks to value stocks. Bond Investor Gross Invoice predicted in a Bloomberg TV interview that inflation will rise from 3% to 4% in the coming months.


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