Stock Market Update

[BRIEFING.COM] The stock market fell to its worst levels of the day following a CBS News report that President Trump is likely to fire Fed Chairman Jerome Powell soon.

A separate Bloomberg report stated that a White House official stated that Trump is considering the move and that it was considered in a meeting Tuesday night with Republican members of Congress.

The major averages dipped to session lows following the report, though they have rebounded slightly since the move. 

Selling activity across multiple sectors occurred, with the health care (+0.8%), real estate (+0.3%), and communication services (+0.1%) sectors the only sectors still in positive territory. 

The stock market's attention to this possibility registered quickly as well in the Treasury market, where the 2-yr note yield, which is more sensitive to changes in the Fed funds rate, moved to lower lows in today's session, while the 10-yr note yield and 30-yr bond yield, which are more sensitive to inflation pressures, moved higher.

Currently, the 2-yr note yield is down eight basis points to 3.86%, the 10-yr note yield is down one basis point at 4.48% (after trading down to 4.44%), and the 30-yr bond yield is up four basis points to 5.06% (after trading down to 4.97%).