"Market Volatility: Bond and Stock Selloffs Spark Concerns Over Interest Rates and Economic Outlook"

A strong U.S. economic data and comments from Federal Reserve Chairman Jerome Powell led to a bond-market selloff, resulting in the worst two-day losses since at least 2022. Long-term Treasurys experienced significant losses, with yields rising by 10 basis points or more. The selloff was driven by fears of "higher for longer" interest rates and expectations for fewer rate cuts this year. Stocks also took a hit, with the Dow Jones Industrial Average falling by as much as 434 points. Despite the selloff, fed funds futures traders still anticipate interest-rate cuts from the Fed, albeit fewer than previously expected, as recent economic data has shown better-than-expected business conditions and continued economic expansion.