Federal Reserve Remains Silent as Bond Yields Surge and Luxury Bets on China Fade

The Federal Reserve has disappointed markets by maintaining its stance on interest rates, signaling that one more rate hike this year is still possible and rates will not be coming down anytime soon. Despite concerns about rising U.S. bond yields, Fed officials remain vigilant about inflation and are closely monitoring the U.S. economy, which appears to be re-accelerating. The recent spike in crude oil prices has reversed, and job openings data will provide further clues about the tightness of the job market. The Fed's hawkishness has kept futures markets pricing a 50-50 chance of another rate hike by year-end, while rising yields and bond volatility continue to impact markets. The dollar has benefited from these developments, reaching its highest level of the year against the euro. U.S. stocks are facing uncertainty as investors navigate higher borrowing rates and better growth projections. In company news, Birkenstock targets a $10 billion valuation in its U.S. IPO, while Boohoo reports a decline in revenue.