S&P 500 Hit in Worst Day Since ‘Post-Fed Tantrum’: Markets Wrap
- Strong payrolls data back case for pause in Fed rate cuts
- Consumer inflation expectations jump to highest since 2008
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Stocks got hammered and bond yields climbed alongside the dollar, with traders slashing their bets for Federal Reserve interest-rate cuts after a blowout jobs report.
A 1.5% slide in the S&P 500 Friday wiped out its advance in the nascent year. The gauge saw its worst rout since Dec. 18 — when the Fed roiled markets by signaling caution over how quickly it can continue reducing rates. Riskier corners of Wall Street sold off, with small caps down about 10% from previous highs. A slide in Treasuries briefly drove 30-year yields above 5%. Swaps are now pricing in less than 30 basis points of Fed cuts this year.