Wall Street is slumping Wednesday after a stronger-than-expected report on the U.S. economy weakened hopes that easier interest rates would arrive soon. Lower rates would relax the pressure on the economy and financial system, while also goosing prices for investments. Treasury yields have already eased significantly since autumn on expectations for coming rate cuts, which in turn has sent stock prices near record heights. Interest rates are one of the main levers that set stock prices. Stock indexes fell more than 1% in Europe following the comments by Christine Lagarde, the head of the European Central Bank.

Source: Los Angeles Times January 17, 2024 15:27 UTC