Week of 02/27-03/03 Stocks Rise as Yields Fall to finish another volatile week

All three market indexes rallied on Friday to end a volatile week in the stock market. At the same time, the 10-year treasury note came back to the 4% key level which indicates bearish sentiment on future economic activity. Remember that the 10-year treasury yield directly affects the mortgage and vehicle loans, so we might see more consequences in the economy rather than just stock market movement. This volatility came as a reaction to the Monetary Policy Report that was published by the Federal Reserve in which it states plans to increase interest rates to stabilize the economy. The battle with inflation is definitely not over and the FED is set to announce their plans to move forward next week. The expectation is now set for the FED to hike rates by 50 basis points and keep that rate for the remaining of the year. Emotions are mixed on what this will do to the market and how banks are going to navigate through the next potential interest rate raises.