Stocks Retreat After Hot ISM Fuels Fed-Hike Wagers: Markets Wrap
- US service gauge rises to six-month high, topping forecasts
- Fed’s Collins says patience needed, more tightening possible
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Stocks declined, while Treasury yields climbed after a stronger-than-estimated reading on the US services industry bolstered speculation the Federal Reserve will keep interest rates higher for longer.
The S&P 500 closed below 4,500 and the Nasdaq 100 fell almost 1% — with Apple Inc. leading a slide in big tech amid higher bond rates. The company also dropped on a news report that Chinese agencies are barring the use of iPhones at work. Two-year yields topped 5%. Swap contracts showed bets on a Fed hike in November rising to about 60%. The dollar edged higher, following a rally that prompted Japan and China to defend their currencies.