Stocks Tumble, Yield Curve Flattens Amid Fed Reset: Markets Wrap
- Short yields jump after Bullard says discussion open on taper
- Once surging DeFi cryptocurrencies tumble; dollar extends rise
Stocks fell for a fourth day, wrapping up the worst week for the S&P 500 since February, as the Federal Reserve’s surprise hawkishness upended the reflation trade that has dominated markets this year. Commodities such as copper slumped while the dollar touched a two-month high.
The Dow Jones Industrial Average, a proxy for so-called value shares, fell more than the benchmark index as investors stepped back from trades tied to expectations for hot economic growth and inflation. Even safe harbor big cash-spewing technology companies such as Apple were lower, pushing the Nasdaq 100 down from a record high. Yields on shorter-maturity Treasuries jumped after St. Louis Fed President James Bullard said on CNBC that the central bank has started discussing scaling back the pace of pandemic bond-buying.