Frantic Selloff: Investors Are Finally Listening To The Fed
Fed officials have been warning investors they may raise rates again in June, and it looks like they finally broke through.
Investors frantically sold off stocks, bonds and commodities after the Fed’s April minutes were released Wednesday, the Wall Street Journal reports. The minutes reveal Fed officials hinting at a rate hike next month should help the economy stay strong.
In the aftermath of the hectic trading, yields on two-year and 10-year Treasury notes soared to their largest one-day gain this year. And a raise in rates could help out the struggling financial sector. Its profits usually rise after a rate hike, and a little bump wouldn't hurt—it's the worst-performing sector in the US economy. [WSJ]