Stocks Climb and Yields Fall as Investors Bet on Fed Rate Hike Pause

Stocks climbed higher while Treasury yields fell as investors bet the Fed may pause rate hikes. The Dow rose 0.4%, the S&P 500 gained 0.5%, and the Nasdaq added 0.6%.

Oil prices settled slightly lower after jumping Monday on Middle East conflict fears. WTI crude fell 0.6% to $85.82 a barrel. Brent crude slid 0.7% to $87.56.

Major real estate groups urged the Fed in a letter to halt rate hikes to prevent housing market volatility spilling to the economy.

Investors increasingly bet the Fed will pause rate hikes in November as bond yields surge, seen as equivalent to a rate hike.

The IMF cut its 2024 global GDP forecast to 2.9% from 3.0% amid economic uncertainties, though it held 2022 view at 3.0%.