Stocks Knocked Down as Torrid Rally Hits a Wall: Markets Wrap
- Big tech underperforms with 10-year yields climbing above 3%
- Euro slumps to almost two-decade low amid dollar advance
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A sobering tone took over Wall Street after a rally that added $7 trillion to the stock market, with traders bracing for hawkish rhetoric from Federal Reserve officials at the Jackson Hole retreat later this week.
Equities saw their worst rout in two months, following a surge that drove the S&P 500 to its best start to a third quarter since 1932. The Nasdaq 100 underperformed as Treasury 10-year yields topped 3%. The meme-stock frenzy continued to unravel, with other speculative corners of the market like Bitcoin and profitless tech firms also getting clobbered. The Cboe Volatility Index, or VIX, soared. As the dollar gained, the euro sank to an almost two-decade low.