Stocks sank after Federal Reserve Chair Jerome Powell weighed an earlier end to bond tapering, with traders boosting their wagers on the pace of interest-rate hikes.
In a wild session for markets, the Treasury curve flattened sharply -- with the premium of the 30-year rate over the five-year yield tumbling. Powell also told a Senate banking committee that it’s time to stop using the word “transitory” to describe inflation. The S&P 500 slumped almost 2%, erasing its November gains. The Cboe Volatility Index notched its biggest monthly surge since February 2020.