While Wall Street’s rally could risk further easing of financial conditions - and ultimately complicate the Fed’s job - bets on a “pivot” next year have increased. Five-year yields plunged 24 basis points to 4.42 per cent. Goldman Sachs Group Inc.’s basket of the most-shorted stocks beat the broader market in a sign some traders are preparing to cover bearish wagers. The Russell 2000 index of small caps added over 5 per cent. Stocks climbed while bond yields sank as an unexpected inflation slowdown bolstered bets the Federal Reserve’s aggressive hiking cycle is now over - and the next move will be a cut in mid-2024.Ībout 95 per cent of the S&P 500 companies rose, with the gauge up nearly 2 per cent.
