- US stocks rose for the third day in a row as investors analysed economic data that suggested slightly slower growth, prompting some to dismiss the Fed's hawkish stance, which it reiterated in its June meeting minutes, as outdated.
- The S&P 500 finished up 0.4% after swinging between gains and losses as investors digested a flurry of data. The tech-heavy Nasdaq 100, whose members have been more sensitive to bond yield rises, rose as well.
- Throughout the day, the two-year and 10-year US Treasury yield curves remained inverted. The dollar maintained its gains.
- Oil has fallen below $100 per barrel.
- On Wednesday afternoon, the Fed revealed details of its June meeting, and all eyes were on it. According to the minutes, Fed officials agreed last month that interest rates may need to rise for longer to prevent higher inflation from becoming entrenched, even if this slowed the US economy. However, traders on Wednesday were also confronted with economic data that indicated a slight slowing in the pace of growth, prompting some to conclude that the Fed's minutes do not accurately reflect the current state of the economy.
- Data released on Wednesday showed that US job openings fell slightly in May but remained near a record, indicating that labour demand remains strong even as optimism about the economy's prospects fades. Growth in the US services sector also slowed to a more than two-year low in June, as orders slowed amid ongoing hiring challenges and capacity constraints.
- Despite recent stock market fluctuations, volatility remains far below levels seen during other powerful bear markets. The VIX hasn't broken 40 since the latest selloff began, which is unprecedented in the last two decades.
