Stock Mood Turns Ugly as Slowdown Fears Surface: Markets Wrap
- Treasuries rally on bets for a policy downshift; dollar gains
- Prominent Fed hawks repeat calls for more rate increases
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US stocks ended the day just off session lows after weak economic data rekindled concern over the outlook for growth and corporate earnings. Treasuries rallied, while the dollar rebounded on deteriorating risk sentiment.
The S&P 500 fell 1.6%, the worst decline in a month, while the tech-heavy Nasdaq 100 snapped a seven-day rally, after reversing gains of more than 1%. Earlier, stocks rallied as Treasury yields fell across the curve on bets weak data would prompt the Federal Reserve to downshift its tightening policy. Two Fed officials, however, repeated calls for more hikes even after further signs the economy was softening and inflation cooling.