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Stocks’ Pandemic Bull Run Ends With Recession Fear: Markets Wrap

  • Traders brace for 4% peak in Fed rate as bond rout intensifies
  • Treasury 10-year yields surge to the highest level since 2011
Bloomberg business news
WATCH: “It’s a very difficult time for markets,“ says DWS’s Sean Taylor. “Everything’s going to come under pressure.”Source: Bloomberg
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US stocks entered a bear market, Treasury yields spiked to levels not seen in a decade and the dollar rallied as the fallout from a hot inflation reading continued to rattle global trading already shaken by worries the Federal Reserve will plunge the economy into a recession.

Another brutal bout of selling sent the S&P 500 to the lowest since January 2021 and down more than 20% from its record. Highly valued tech shares bore the brunt of the rout, with the Nasdaq 100 slumping over 4.5%. The Cboe Volatility Index topped 30 and the futures curve inverted in a rare instance of traders pricing in more uncertainty in the here-and-now than in three months. Speculative areas of the market inflated by years of government largesse buckled. Profitless software firms, newly public companies and blank-check entities sold off. Bitcoin plummeted below $24,000 after a lending platform ceased operations.