Rate Cut Hopes Fade as Data Signals Solid Growth, Lifting Yields and Stocks
• Markets shrugged off concerns about declining likelihood of June rate cuts following services sector slowdown
• Hopes faded for 3 rate cuts starting in June after Raphael Bostic forecast only 1 cut this year
• Bond yields rose on "higher for longer" rate outlook, dragging down rate-sensitive bond ETFs
• Inflation gauges came in high, giving Fed cover to hold rates despite hopes for 2H cuts
• Strong ADP private payrolls report boosted stocks but may support "higher for longer" if Friday jobs data stays strong