Rising Rates Rattle Markets as Fed Signals More Hikes Ahead

Interest rates have been the dominant market driver, with the absolute level of the 10-year Treasury yield garnering significant attention.

The Fed indicated that additional rate hikes are likely this year and rate cuts in 2023 may be more modest than previously expected. This added pressure on bond yields.

Regional banks, REITs, utilities and other rate-sensitive sectors have struggled recently as rates climb.

Expectations for the Fed being done with hikes and starting to cut aggressively in 2023 have been dashed, removing a pillar of support for stocks.

With risks high across markets, Treasury bills are one of the few places to hide out long-term until better opportunities emerge.