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Ugly Selloff Pushes Stocks Down Most Since 2020: Markets Wrap

  • Jumbo September interest-rate hike now fully priced in
  • Yield curve inversion deepens; Bitcoin plunges most since June
Bloomberg business news
Stocks Have Worst Day Since 2020Source: Bloomberg
Updated on

A broad-based selloff sent equities to their worst day in more than two years after hotter-than-expected inflation data fueled bets on a jumbo hike by the Federal Reserve next week. Treasury yields surged and the dollar gained.

Across the board selling sent the S&P 500 down more than 4%, while the tech-heavy Nasdaq 100 losses surpassed 5% as yield-sensitive stocks took the biggest hit. Both benchmarks suffered their worst one-day routs since 2020. Swaps traders are now fully pricing in a rate increase of three-quarters of a percentage point, with wagers rising for a similar move in November and policy rates ultimately reaching around 4.3% early in 2023.