Wall Street Shuns Risk as Recession Talk Ramps Up: Markets Wrap

  • US service gauge falls more than expected as demand moderates
  • Private payrolls rose 145,000 in March, below all estimates
Fed's Mester on Labor Market, Policy, Rates PathSource: Bloomberg
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Wall Street saw a renewed flight to safety, with bonds climbing and equities dropping after weaker-than-estimated economic data revived fears that a recession could be in store.

In a rotation away from growth shares, the Nasdaq 100 underperformed major benchmarks. Some of the most-speculative pockets of the market bore the brunt of the selling, with a gauge of newly minted stocks getting hit and a basket of profitless technology firms tumbling over 4%. Banks finished lower even after Western Alliance Bancorp’s deposit disclosure.