Shares of banks and other financial institutions fell as global market instability persisted.
The current selloff was triggered by a spike in the 10-year Treasury yield earlier in January, as credit markets braced for rate hikes. As the flight from risk intensified, however, traders returned to Treasury markets, pushing the yield on the 10-year note lower this week.
Most strategists say the Federal Reserve will be forced to raise interest rates in March because of pressing inflation concerns. The question is whether the central bank manages to "thread the needle" and forestall inflation without pushing the economy into recession, said one strategist.
"The Fed's goal is still a longer economic cycle," said Brent Schutte, chief investment strategist at money manager Northwestern Mutual Wealth Management. "They're going to have to fine-tune it, not kill it."
Real-estate investors Blackstone and Starwood Capital Group teamed up for the second time in less than a year to invest in the extended-stay hotel sector, agreeing to buy 111 properties under the WoodSpring Suites brand from investment firm Brookfield Asset Management.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-21-22 1658ET
