U.S. stocks trade mixed as bets build on a Fed rate hike; 2-year Treasury yield hits 4.32%

Rising expectations for a near-term Fed hike, reinforced by Chair Warsh's emphasis on short-term rates as the primary tightening tool, pushed the 2-year Treasury yield up to 4.32% and lifted the implied hike probability to nearly 60%. Higher front-end yields typically pressure equity valuations, leaving US stocks mixed with Nasdaq weaker. Markets also face policy uncertainty as the Fed signals fewer forward-guidance clues.