A selloff in the riskier corners of the market deepened as the UK’s plan to lift its economy fueled concerns about heightened inflation that could lead to higher rates, adding to fears of a global recession.
It was a sea of red across equity trading desks, with the S&P 500 briefly breaching its June closing trough -- and failing to pierce its intraday low for the year. Chartists looking for signs of where the rout might ease had identified that as a potential area for support. Yet the lack of full-blown capitulation may be an indication the drawdown isn’t over. Goldman Sachs Group Inc. slashed its target for US stocks, warning that a dramatic upward shift in the outlook for rates will weigh on valuations.