S&P 500 Sinks 2% as Economic Fears Spur Bond Rally: Markets Wrap
- Consumer sentiment sinks as tariffs drive price expectations
- Key US inflation gauge picks up while spending barely rises
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Stocks got hammered, bonds climbed and gold hit a record high, following signs of weakness in the main engine of the US economy and worries that inflation could gain further traction amid a trade war.
With just one more session left before the end of a quarter that’s set to be the S&P 500’s worst since 2022, the gauge fell 2%. Data showed a plunge in US consumer sentiment and a surge in long-term inflation expectations. That was after another report underscored tepid spending and a pick-up in prices ahead of next week’s big US tariff rollout. A gauge of tech megacaps slumped 3.5%. The yield on 10-year Treasuries sank 10 basis points to 4.26%.