Cyclicals Weigh on Stocks; Treasury Curve Flattens: Markets Wrap
- Fed may need to discuss faster taper of bond buys: officials
- Austria imposes widespread restrictions as coronavirus rages
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Stocks retreated after hawkish remarks from Federal Reserve officials and mounting concern that another wave of the pandemic in Europe could spur more lockdowns.
Economically sensitive companies like energy, financial and industrial shares fell, while the technology-heavy Nasdaq 100 outperformed major benchmarks. The Treasury curve flattened after two members of the central bank’s board said the Fed may need to consider speeding up the reduction of its bond-buying program amid strong economic growth and rising inflation. The dollar rose.