![]() employment data on Friday for clues on whether the Fed’s rate hikes have begun to erode the economy’s strength. Of course, plenty can change between now and the Fed's December meeting. "It’s a tough place to be for fixed income and equities." "The Fed wants tighter financial conditions, it always gets what it wants," he said. Troy Gayeski, chief market strategist at FS Investments, believes that even after the Fed finishes hiking rates, it will likely be slow in bringing them down, meaning it may be "months and quarters" before it makes sense to aggressively buy risky assets. Meanwhile, a rebound in bonds saw 10-year Treasury yields fall to 2.7% over the summer before soaring to 4.3% last month. Indeed, hopeful rallies followed by swift reversals have been a feature of asset prices this year, during which the S&P 500 has bounced by 6% or more four times only to reverse and make a new low. "So we're still remaining quite defensive equities …especially after this press conference." "Every time that there's been a rally in the equity markets.we talked about the need to still be defensive," said Gargi Chaudhuri, Head of iShares Investment Strategy, Americas, at BlackRock. ![]() Treasury, which move inversely to prices, climbed 4 basis points to about 4.09%. The S&P 500 fell 2.5% while yields on the benchmark 10-year U.S. Rates expectations in futures markets rose across the board, with the so-called terminal rate now seen peaking at around 5.1% in June, compared with around 5.02% before the meeting began.
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