Stocks Drop to Lowest Since July on Fears Fed Will Stay Hawkish
- Small caps post longest slump since 2018 as bond yields surge
- BNP Paribas cuts S&P 500 target on risks to earnings estimates
This article is for subscribers only.
US equities sank to the lowest level since mid-July on Tuesday after stronger-than-expected economic data added to concerns about the Federal Reserve’s plans for interest rate hikes as bond yields surged.
The S&P 500 Index closed down 0.4% with seven of the 11 major industry groups falling, led by declines in the communication services and energy sectors. The tech-heavy Nasdaq 100 Index slid 0.7%. And the Russell 2000 Index sank 1%, ending in the red for a seventh session, its longest losing streak since December 2018.