Dow Plunges 666 Points as Rate Angst Sinks Bonds: Markets Wrap
- 10-year yield tops 2.83%, dollar erases losses for week
- S&P 500 down 3.9 percent in week, most since early 2016
This article is for subscribers only.
The Dow Jones Industrial Average tumbled 666 points in the biggest plunge since June 2016, as the worsening bond rout stirred angst that the Federal Reserve will accelerate its rate-hike schedule.
Solid jobs data that underscored the strength of the economy sent bond bulls scurrying and rattled equity investors who haven’t seen a week this bad in two years. The tandem selling accelerated after Dallas Fed President Robert Kaplan suggested officials may need to hike more than three times this year to cool the advance. The 10-year Treasury yield popped above 2.85 percent for the first time since January 2014.