Strong retail sales data US bond yields hit a 17-year high But precious metal bulls keep still

Strong retail sales data

US bond yields hit a 17-year high

But precious metal bulls keep still

On Tuesday (October 17), the strong economic report strengthened the reason for the Federal Reserve to maintain high interest rates for a longer time. The yield of US treasury bond bonds climbed, and the US stock market was in trouble. According to a preliminary report released by the US Department of Commerce on Tuesday, retail sales increased by 0.7% in September, far exceeding Dow Jones' expectation of 0.3%. The yield of two-year US treasury bond hit the highest level since 2006, while the yield of 10-year treasury bond rose 13 basis points to 4.83%.

The swap contracts related to the Federal Reserve's interest rate decision show that traders expect policy makers to have a more than 60% chance of increasing by another 25 percentage points in January after stabilizing in November. Taking action in December is considered possible, but the likelihood is lower than in January.

The S&P 500 index erased the gains, led by the decline in its most influential sector - technology stocks. NVIDIA's stock price plummeted due to US restrictions on the sale of chips designed for the Chinese market. Goldman Sachs' profits fell by 33%, leading to a decline in its stock price. Bank of America's stock market rose after traders reported their best third quarter results in over a decade.