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Traders on Tenterhooks Sink Stocks in Fed Run-Up: Markets Wrap

  • Two-year US yields trade near 4%; dollar gauge rises to record
  • Fed set to reveal pain coming in next stage of inflation fight
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Markets Should Not Price in Rate Cuts Next Year: XuSource: Bloomberg
Updated on

Stocks came under pressure as Treasury yields hit multiyear highs, with traders bracing for a hawkish Federal Reserve that’s expected to boost rates to levels not seen since before the 2008 financial crisis.

A slide in equities pushed the S&P 500 more than 10% below its Aug. 16 high -- which marked the peak of rally from the June bottom. About 93% of its companies were down Tuesday, with all major groups in the red. Ford Motor Co. tumbled the most in 11 years after warning on inflation costs. Two-year US yields approached 4% while a dollar gauge rose to a record.