Stocks Get Hammered as Traders Hit Risk-Off Button: Markets Wrap
- Consumers long-run inflation views rise to highest since 1995
- US business activity moderates as the service sector cools
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Stocks had their worst session so far in 2025 after weaker-than-expected economic data and a surge in consumers’ long-run inflation views to the highest since 1995.
From consumer sentiment to housing and services, Friday’s readings unsettled investors at a time when the Federal Reserve is in no rush to cut rates. The S&P 500 lost over 1.5% and bonds rallied. A notional $2.7 trillion of options tied to equities and ETFs was set to expire. That usually amplifies price swings. Also contributing to the volatility was a rally in Covid-19 vaccine makers as traders shared earlier reports about a new coronavirus study in China.