Stocks Float As 2-Year Yield & Dollar Sink

The S&P 500 bottomed this morning around 10 a.m. about 1% below yesterday's close on earnings misses by Alphabet and Microsoft. But it quickly popped back up to the surface, so it now is floating slightly above yesterday's close as of 11 a.m. The trading day isn't over, but there is an interesting dynamic playing out in the markets:

(1) The 2-year Treasury yield is down from 4.63% on Friday morning to 4.44% this morning. On Friday, the WSJ reported that the FOMC is likely to go ahead with a 75bps hike in the federal funds rate at its November 1-2 meeting, to debate whether to hike by 50bps or 75bps in mid-December, and then (maybe) to decide to pause rate hiking early next year.