Stocks Hit by Fed-Hike Jitters as US Yields Surge: Markets Wrap

  • Morgan Stanley’s Michael Wilson is a seller of equities again
  • Traders eye leveraged loans for cracks in credit: MLIV Pulse
WATCH: Bidgewater strategist Rebecca Patterson says her firm remains “quite cautious on assets.”Source: Bloomberg
Lock
This article is for subscribers only.

Stocks kicked off the week with losses and bond yields climbed as a US services gauge unexpectedly rose, fueling speculation the Federal Reserve will keep its policy tight to tame stubborn inflation.

The selloff spread throughout all major S&P 500 sectors, with about 95% of the gauge’s companies in the red. Tesla Inc. tumbled almost 6.5% as Bloomberg News reported the electric-vehicle giant plans to lower production at its Shanghai factory. A slide in the Russell 2000 of small caps approached 3%.