The article discusses the recent decline in US stock markets, with the S&P 500 suffering its biggest drop in nearly two years. The sell-off was driven by concerns over persistently high inflation and the potential for more aggressive interest rate hikes by the Federal Reserve to combat rising prices. The technology-heavy Nasdaq composite bore the brunt of the selling, falling 4.7%, as investors shifted money away from high-growth companies. The yield on the 10-year Treasury note rose to 2.83%, its highest level since late 2018, as expectations for Fed rate hikes increased. Retailers and other companies that rely on direct consumer spending also fell sharply. The market’s volatility reflects investors’ uncertainty about how aggressively the Fed will raise interest rates to slow inflation that is at a four-decade high.
Source: https://apnews.com/article/stock-markets-rates-inflation-9f49f89dc375db55bfc8f95a6226782b