Stocks Drift Lower as Bond Yields Remain Elevated: Markets Wrap
- Fed’s hawkish stance key concern for highly valued stocks
- Tech volatile as global government bonds extend slide
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U.S. stocks drifted lower after swinging between gains and losses as investors reassessed valuations following the Federal Reserve’s latest signal that it will move aggressively if prices remain elevated.
The S&P 500 edged downward in late trading after attempting to rebound from a 1.9% drop sparked by Fed meeting minutes that suggested the central bank is ready to raise rates sooner and higher than previously expected. The hawkish stance hammered the riskiest of assets, from high-priced software stocks to newly-public companies with limited earnings track records. Treasuries continued a selloff, although the velocity of the downdraft eased with the 10-year rate near 1.73%. The dollar was slightly stronger.