Market Volatility Soars as Economic Data Drives Treasury Yields and Stock Market Performance

Treasury yields surged as strong US economic data fueled speculation that the Federal Reserve will raise interest rates twice more this year. Bond yields across the curve fell, with two-year yields jumping 16 basis points to 4.87%. The S&P 500 experienced volatility as traders adjusted their positions at the end of the quarter. US jobless claims fell significantly, and GDP was revised up to a 2% annualized advance in Q1. The market is processing the economic strength in both positive and negative ways, as it signals resilience but also emboldens the Fed to raise rates. Bank of America and Wells Fargo led gains in financial companies after passing the Fed's stress test, and Netflix climbed as Citigroup raised its price target.