Dialing back rate-hike expectations
The S&P 500 is down 2.3% and has turned negative for the month. Rake-hike expectations have been dialed back today. According to the CME FedWatch Tool, the probability for a rate hike in May 2022 has decreased to 34.0% from 55.3% on Wednesday, and the probability for a rate hike in June 2022 has decreased to 58.5% from 82.1% on Wednesday. Overseas, the major European indices closed sharply lower on COVID/growth concerns. Germany's DAX fell 4.2%, UK's FTSE fell 3.7%, and France's CAC fell 4.8%. The Europe Stoxx 600 dropped 3.7%.