- Global Stocks Hit One-Month Low as Dollar Advances
- Powell’s signal of higher-for-longer Fed rates hits sentiment
- US two-year Treasury yield reaches highest level since 2007
Federal Reserve Chair Jerome Powell’s signal of higher-for-longer interest rates coursed through markets Monday, sinking stocks and equity futures and lifting two-year Treasury yields to levels last seen in 2007.
A global share index fell to a one-month low as Asian equities shed over 2%, hurt by tech firms. Losses on Nasdaq 100 and European futures were at least 1%. Progress in the US-China delisting spat helped to cushion Chinese stocks.
The Bloomberg Dollar Spot Index pushed toward the record hit last month as investors sought a haven from spiking volatility. Commodity-linked currencies as well as the yen, the pound and the offshore yuan were under pressure.
Bonds sold off and a deepening inversion of the Treasury yield curve underscored expectations of a recession as monetary policy tightens. The US two-year yield, sensitive to expectations around Fed policy, hit 3.47%
Bitcoin broke below the $20,000 level some view as a marker of a deeper slide in investor sentiment. Gold retreated but oil made gains on supply risks.