US Stocks Tumble on Inflation Angst, Bond Yields Surge
U.S. equities sold off sharply as inflation worries pushed long-end yields to multi-decade highs, with the Nasdaq 100 entering correction territory.
Wall Street finished deep in the red on Thursday, with the S&P 500 dropping 1.5% and the Nasdaq 100 sliding into a technical correction, now down 11% from its record high. The sell-off was driven by mounting inflation fears after the Federal Reserve held rates steady while acknowledging a resurgence in oil prices.
Longer-dated Treasury yields jumped to levels not seen in nearly two decades. The 30-year yield rose to its highest since 2007, reflecting market anxiety that sustained energy costs could keep price pressures elevated. Brent crude breached the $90 a barrel mark, adding to the stagflation-flavored narrative.
The Fed’s decision to pause rate hikes, paired with its cautious tone on inflation, failed to soothe investors. Instead, the repricing in the bond market spilled over into equities, hitting rate-sensitive tech shares especially hard.
Source: First Squawk