Rising market rates were a big headwind for stocks today.
The 10-yr note yield reached 4.00% earlier and settled up eight basis points at 3.99%.
The 2-yr note yield rose ten basis points to 4.90%. These moves were mostly in response to the ISM Manufacturing Index this morning and comments from Fed officials.
ISM Manufacturing Index edged higher to 47.7% from 47.4% in January. A reading below 50% is indicative of a general contraction in manufacturing activity. The sticking point is that the Prices Index rose to 51.3% from 44.5%, marking the first price increase in four months. This price data followed a higher-than-expected February CPI reading for Germany.
Minneapolis Fed President Kashkari (2023 FOMC voter) saying he is leaning toward raising rates further and pushing up his own policy path forecast and Atlanta Fed President Bostic (2024 FOMC voter) saying he thinks the Fed should get to 5.00-5.25% and hold there well into 2024, according to CNBC.