Dovish Fed Comments Fuel Speculation of Pause in Rate Hikes, Boosting Treasuries and Stocks

Treasuries jumped and shares advanced after dovish comments by Fed officials fueled speculation of no more hikes this year.

Traders boosted bets that the US tightening cycle is about done, while Middle East tensions added haven demand.

Fed Vice Chair said officials could "proceed carefully" after the rise in yields, and Dallas Fed President said less tightening may be needed.

The spike in yields and Middle East tensions served as a catalyst for the awaited dovish shift from the Fed that markets wanted.

Fiscal policy constraints as the Fed fights inflation could be the next risk to stocks, according to Morgan Stanley's Michael Wilson.