Shares of banks and other financial institutions rose as hopes for a Federal Reserve rate cut remained high following mixed economic data.
Mixed economic signals continued, with a report of muted jobs growth in a private-employers' survey coinciding with a surprisingly robust reading of services-sector growth.
A trend of waning strength in jobs data has spurred bets in the last couple of weeks that the Fed would cut rates later this year after all.
One strategist said the recent increase in the 10-year Treasury yield, which has driven mortgage rates up to near multiyear highs, is surprising, given the situation with inflation.
"Since the consumer price inflation rate peaked in 2022, bond yields have continued to rise making them appear increasingly out of whack," said longtime Wall Street strategist Jim Paulsen, in an independent newsletter.
"As real economic activity and inflation slow further, the likelihood of a significant decline in the 10-year yield is growing."
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
06-05-24 1717ET
