Marketbites: British Pound Keeps Getting Pounded
Portfolio Manager Commentary:
The S&P 500 and Dow fell deeper into bear market territory on Tuesday, while the 10-year Treasury yield climbed to levels not seen in the last decade. The Nasdaq was the only index managing to finish positive, rising 0.25%. Meanwhile, the S&P 500 dropped 0.21% and the Dow fell 0.43%.
Stocks received an initial boost after the Chicago Fed President Charles Evans signaled nervousness about the central bank raising rates too quickly. These comments contrasted with those from other Fed officials who have recently backed the central bank’s hawkish stance without hesitation.
The pound was rising more than 1% against the US dollar at one point early in the day prior to finishing with just a 0.4% gain at about $1.07.
Chart of the Day:
Lumber prices have officially fallen to their pre-Covid levels, at just above $410 per thousand board feet. Wood had been one of the pandemic's hottest commodities and recent interest rate rises have brought prices back down. Prices for wood had initially crashed during the pandemic. Then, after the initial crash, prices exploded due to mass numbers of stuck-at-home Americans remodeling and buying suburban homes.