Stocks Sink as Hawkish Bets Revive Recession Fears: Markets Wrap
- Treasury yield-curve inversion reaches a four-decade extreme
- Pound tumbles as BOE tells investors to rein in hike wagers
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Stocks sank before Friday’s jobs data amid concern that a deeper recession could be in store with the Federal Reserve expected to hold rates at a higher level for longer to tame inflation.
The S&P 500 saw its fourth straight decline, dragged down by big tech as Treasury yields climbed. Apple Inc. tumbled over 4% and Amazon.com Inc. suffered its longest slide since 2019. A key segment of the Treasury curve reached new extremes of inversion, touching a level not seen since the 1980s when the Fed was aggressively tightening. Curve inversions have a track record of preceding economic downturns.