Stocks Roiled by Bond Rout Amid Inflation Jitters: Markets Wrap
- US services index climbs, price gauge hits highest since 2023
- Swap traders no longer fully price in US rate cut before July
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Stocks got hammered as a selloff in the world’s biggest bond market deepened on speculation the Federal Reserve won’t cut interest rates before July amid inflation risks.
Following a recent rally, equities lost traction on Tuesday as a report on US service providers showed a price gauge hitting the highest since early 2023. A selloff in big tech weighed heavily on Wall Street trading, with the S&P 500 down over 1% and the Nasdaq 100 falling almost twice as much. Nvidia Corp. sank 6.2%. Treasuries fell across the curve, with a $39 billion sale of 10-year bonds drawing the highest yield since 2007. The market also came under pressure amid a flurry of investment-grade deals.