Yield

• Wall Street stocks closed higher on Thursday as investors reacted to falling oil prices, lower Treasury yields, and positive labor data. • Financial markets now price in a 53.1% chance of a 25-basis-point interest rate hike at the next Federal Reserve meeting in October, up from 27.2% last week. • The Federal Reserve's commitment to a 2% inflation goal signals that more monetary tightening, or increasing interest rates to cool the economy, is likely this year.

• Rising energy prices and global borrowing costs linked to the war in the Middle East are pushing markets toward a period of stagflation on September 18. • This economic condition is characterized by the simultaneous occurrence of high inflation and slow growth. • These trends threaten to damage global economies by increasing the cost of living and reducing overall financial stability.

• European stocks rose following a Federal Reserve interest rate hike as oil prices fell and bond yields stabilized. • Sweden’s benchmark index climbed 1.1 per cent, while spirits maker Berentzen jumped 19.4 per cent after confirming takeover talks with Sazerac. • E-commerce platform Allegro shares rose 9.5 per cent after the company beat second-quarter guidance and raised its 2026 forecasts.

• European stock markets rose on Tuesday as oil prices declined and government bond yields remained steady. • The Toronto Stock Exchange ended the session lower following a Federal Reserve interest rate hike that dampened investor sentiment. • Minutes from the Bank of Canada's September meeting revealed that officials viewed inflation risks as remaining elevated.

• Rising oil prices, interest rates, and bond yields are creating a stagflation environment, which is a period of slow economic growth combined with high inflation. • Higher interest rates are expected to push squeezed consumers to save more and spend less. • This shift in consumer behavior deprives domestic economies of necessary spending, potentially slowing overall market growth.

• Stock futures rebounded recently following a selloff triggered by Federal Reserve policy signals. • Analysts suggest that current market expectations for additional interest rate hikes through 2027 are likely overdone. • A projected drop in bond yields could provide a catalyst for growth in the stock markets.

• The Dow Jones Industrial Average rose 250 points as markets recovered from a sell-off following a Federal Reserve interest rate decision. • The Federal Reserve raised the overnight funds rate by a quarter percentage point and indicated that another rate hike could occur this year. • Treasury yields declined, with the 10-year yield dropping more than 5 basis points to 4.949% after previously crossing the 5% threshold.