Hawkish Fed Sinks Tech Shares; Bonds Fall: Markets Wrap

  • Traders flock to risk-off stock sectors; crude oil slips
  • Money markets pricing sharpest Fed tightening in three decades
Minutes Signal Fed to Shrink Balance Sheet by $95B/MonthSource: Bloomberg
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Stocks and long-dated Treasuries maintained losses after minutes from the latest Federal Reserve meeting showed officials were laser focused on tamping down inflation.

The S&P 500 ended trading 1% lower while the tech-heavy Nasdaq 100 shed 2.2% as the minutes signaled the U.S. central bank is prepared to raise rates sharply and reduce its balance sheet to cool the economy.