Stronger US economic data prompted markets to push Fed rate expectations higher. Bond yields and the US dollar rose, while equities fell, the S&P500 closing down 2.4%.

Markets initially reacted to stronger than expected US inflation data, but the reactions were later curiously retraced. The S&P500 is now up 2.7%, and the US dollar is lower, although short maturity bond yields have retained most of their gains.

Markets were in a holding pattern ahead of tonight’s key US inflation data. The S&P500 is down just 0.1%, and bond yields and most currencies are little changed.

Markets paused prevailing trends overnight, the S&P500 up 0.4%, and bond yields and the US dollar lower.

The risk averse mood persisted during the US holiday, the S&P500 down 0.6%. Global bond yields rose, and the US dollar is higher.

A solid US jobs report caused bond yields and the US dollar to rise further, and equities to fall – the S&P500 closing down 2.8%.

Bond yields rose amid more hawkish Fedspeak. The US dollar also rose, while the S&P500 is down 1.1%.

Bond yields rose as market expectations of a Fed slowdown waned, partly helped by healthy US services data. The US dollar rose and the S&P500 is unchanged.

The rebound in risk sentiment continued, the S&P500 up 2.9%. The defensive US dollar fell, and bond yields rose slightly. Stretched positioning, as well as US job openings data, likely contributed to the moves.

“Tighter monetary policy has begun to cool demand and reduce inflationary pressures, but our job is not yet done,” Williams said Monday in remarks prepared for a speech in Phoenix. “It will take time, but I am fully confident we will return to a sustained period of price stability.”