Stocks Drop as Hawkish Fed Wagers Lift Bond Yields: Markets Wrap
- Fed’s Williams says half-point hike is ‘reasonable option’
- Musk cites Plan B on Twitter takeover bid, unsure of success
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Stocks fell as Treasury yields climbed on speculation the Federal Reserve will boost rates aggressively to contend with decades-high inflation. The expiration of options potentially amplified equity-market moves on Thursday.
Twitter Inc. closed lower as billionaire Elon Musk expressed doubt about whether he’ll succeed with his offer to buy the social-media giant, while citing a “Plan B” if the bid isn’t accepted. The specter of higher borrowing costs sank rate-sensitive technology companies, which led S&P 500 losses. Ten-year U.S. yields topped 2.8% and the dollar rose as New York Fed President John Williams said that speeding up the pace of tightening to include hikes in increments of a half-percentage point is a “reasonable option.”