Stocks plunged with Treasuries in a violent reversal from the reaction to the Federal Reserve decision as traders worried that officials could struggle to fight inflation amid the threat of a recession.
Just a day after notching the biggest rally in two years, the S&P 500 tumbled, with more than 95% of its companies moving lower. In a sign of just how volatile markets have been amid the Fed’s tightening campaign, the 3.6% rout was only the worst since Friday. The Nasdaq 100 suffered one of its sharpest U-turns ever. The tech benchmark plunged about 5%, wiping out its post-Fed gains. A selloff in long-end Treasuries pushed the 10-year yield above 3%. The dollar climbed.