Stocks Sink to 13-Month Low as U.S. Curve Steepens: Markets Wrap
- Longer-term inflation expectations rise in New York Fed survey
- Fed’s Bostic says no need to move faster than half-point hikes
Stocks tumbled to a 13-month low in a widespread selloff amid concern about the Federal Reserve’s ability to tame inflationary spirals without throwing the economy into a recession.
The slide in the S&P 500 topped 3%, while the Treasury curve steepened, with the gap between two- and 30-year rates hitting the widest since mid-March as short-dated bonds led the gains. Investors are increasingly worried about the limits to Fed policy at a time when supply-chain disruptions pose a significant threat to inflation amid a ravaging war in Ukraine and China’s Covid lockdowns. Data Monday showed U.S. consumers project prices in three years to be higher compared with a month ago -- a troubling sign for officials trying to keep longer-term expectations anchored.