Stocks dip, 2-year US yield falls after Fed's Williams cools rate hike bets
Tue September 28, 2026
As is often the case with the market, things happened today that should have triggered a rally but instead sparked an enormous slump. With the NY Fed prez citing no compelling reasons for another rate hike and the 2-year yield falling, stocks should have gone up. But at least the decline was much worse earlier in the day and most losses were recovered. By noon the Dow was down some 350, the S&P down 30. The afternoon saw a gradual recovery but all three still ended in the red. The comments from the NY prez brought the odds of an October hike down to 50% from 70% this morning.
But bad news included the 10-year reaching its highest level in 19 years and the 30-year its highest in 24 years. Consumer confidence fell to its lowest in 12 years with we the people expecting conditions to worsen over the next six months. There was the additional conflict with the Chicago prez contradicting NY in noting that we’d been over the Fed’s inflation target for more than five years and described this as “playing with fire,” indicating an absolute need for another hike. PCE comes in on Wednesday and everyone is on needles and pins as to whether it will show even more inflation. Per the CBOE, volume came in at 16.8 billion, precisely the 4-week average.
DJ: 51,481.51 -347.11 NAS: 26,820.38
-248.34 S&P: 7,683.69
-59.72 9/28
DJ: 51,349.92 -131.59 NAS: 26,797.54
-22.84 S&P: 7,670.84
-12.85 9/29
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