Published on 13 Jan 2022 on Zacks via Yahoo Finance
Wall Street saw some respite in yesterday’s trading session from the rough phase since the beginning of 2022. All the three major averages traded in the green on Jan 11. The Dow Jones Industrial Average was up 0.5%. The S&P 500 and the Nasdaq Composite rose 0.9% and 1.4%, respectively, in yesterday’s trading session.
The rising benchmark 10-year Treasury yields have primarily caused volatility in the stock market. The yields rose as high as above 1.8% on Jan 10 after standing at 1.51% on Dec 31.
The Federal Reserve has already started tapering the bond purchases, which it expects to complete by March. The Fed is expected to begin raising its benchmark interest rate in March. The Federal Reserve may take a more aggressive approach in raising interest rates. In fact, Goldman Sachs is expecting the Federal Reserve to increase interest rates four times this year, according to a CNBC article.