Treasury Yields Rise as Powell Signals Fed Patience on Rate Cuts

Market Overview

* Treasury yields climbed, while stocks fluctuated.
* The S&P 500 remained range-bound, with tech stocks weighing heavily.
* Meta Platforms extended its rally, while Intel and GlobalFoundries surged.

Fed Policy Stance

* Federal Reserve Chair Jerome Powell reiterated the Fed's cautious approach to rate cuts.
* Powell stated that the central bank will monitor inflation progress before lowering borrowing costs.
* Money markets fully price in only one rate cut by the Fed this year.

Inflation Data and Economic Indicators

* Consumer price index data for January is expected to show a modest increase.
* Inflation is forecast to have risen marginally slower than in December.
* Despite signs of inflation easing, the Fed remains focused on holding rates steady.

Market Reactions

* The 10-year Treasury yield rose to 4.54%.
* The S&P 500 exhibited tight trading, with a low volatility range.
* Nasdaq 100 declined slightly, while the Dow Jones Industrial Average gained.

Corporate News

* Boeing delivered more jets than Airbus for the first time in two years.
* Coca-Cola reported higher profits due to increased prices.
* Shopify exceeded expectations with its e-commerce software solutions.
* Humana will reduce Medicare Advantage membership to improve quality ratings.
* Travelers expects losses from California wildfires.
* DuPont's earnings grew thanks to strong electronics demand.
* S&P Global reported strong earnings driven by corporate debt issuance.
* Kellogg surpassed profit estimates despite sales challenges.
* Marriott's net room growth guidance disappointed analysts.
* Elliott Investment has a significant stake in Phillips 66 and plans to divest its pipeline business.

Key Upcoming Events

* US Consumer Price Index (Wednesday)
* Fed Chair Powell's testimony before House Financial Services Committee (Wednesday)
* Eurozone industrial production (Thursday)
* US initial jobless claims, Producer Price Index (Thursday)
* Eurozone GDP (Friday)
* US retail sales, industrial production, business inventories (Friday)