Late Equity Roundup: Weaker But Off Lows

Stocks headed for a weaker close, but off Tuesday's midday lows after hawkish Fed rhetoric weighed more heavily on rates than equity markets.

• In short, Fed Gov Brainard and KC Fed George delivered one-two punch to markets midmorning on the importance of keeping inflation contained by raising rates methodically and starting draw balance sheet draw down as soon as May. Neither directives new but 30YY surged from around 2.50% prior to 2.596% session high.
• S&P eminis currently trading -64.5 (-1.41%) at 4513.25 -- ESM2 outlook remains bullish as long as futures remain above 4457.40 50-day EMA. Breach opens up key support of 4320.25 Low Mar 17. Meanwhile, Dow Industrials currently trade -318.84 (-0.91%) at 34602.07, Nasdaq -351.1 points (-2.4%) at 14182.24.
• SPX leading/lagging sectors: Utilities sector pared back earlier gains to +0.54% lead by electricity providers (2s10s curve dis-inversion helping cool energy related recession concerns); Health Care Sector still outperforming but off earlier highs at +0.15% lead by equipment mfgs and pharmaceuticals.
• Laggers: Consumer Discretionary (-2.46%) outpaced Information Technology (-2.32%) latter weighed down by semiconductors.