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Markets Have an Awful Day After Hotter-Than-Expected Inflation Data

  • Combined loss from SPY and BND is the worst in three months
  • Synchronized retreat is signature hazard of 2022’s markets
Bloomberg business news
Stocks Have Worst Day Since 2020
Updated on

Blinded by hope the worst had passed, investors who spent recent sessions warming to bullish bets in stocks, bonds and foreign exchange paid a stiff price for their optimism Tuesday.

Equity traders saw virtually all of a four-day surge wiped out after the government said August inflation was hotter than feared. Relative peace in the bond market was shattered, with two-year yields climbing the most in more than a month. The euro’s brief rally against the dollar faltered as data cemented expectations for a 75-basis-point Federal Reserve hike next week.