Wall Street holds back on big bets amid data flood

Stocks, bonds and the dollar saw small moves, with Wall Street traders refraining from making significant bets amid this week’s economic data deluge.

The S&P 500 churned near 4,400 a day after the benchmark gauge notched its first back-to-back advance in August.

The yield on 10-year Treasuries climbed two basis points to 4.2%. The dollar rose, pushing toward the highest since May.

“The stock market pullback in August was warranted as multiples expanded rapidly and yields on the 10-year Treasury surged, suggesting inflation and rates will remain higher for longer,” said Richard Saperstein, chief investment officer at Treasury Partners in New York.

“Given elevated multiples, we expect increased volatility from the potential bite of aggressive Fed policy leading to further declines in economic activity.”

Labor-market figures are seen showing fewer July job openings than a month earlier, indicating labor supply and demand are coming into better balance.

That may help limit wage pressures and, ultimately, inflation.

Meantime, consumer confidence is expected to deteriorate slightly as inflation remains elevated and mortgage rates have surged, putting rate-sensitive purchases out of reach for many households.