Wall Street Hit by Fed Jitters to Close Wild April: Markets Wrap
- Labor costs rise by most in year, signaling wage pressures
- US consumer confidence slumps to lowest level since July 2022
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The stock market sank in the final stretch of April and bond yields climbed on concern that stubborn inflation will force the Federal Reserve to keep interest rates higher for longer.
On the eve of the Fed decision, a broad gauge of US labor costs closely watched by policymakers jumped the most in a year. The data signaled wage pressures, reinforcing bets that officials will keep rates unchanged at a two-decade high Wednesday — and are unlikely to lower them anytime soon. That perception combined with a plunge in consumer confidence weighed heavily on equities — which suffered their worst month since September.