Equities Get Hammered as Traders Go Risk-Off – US Market Wrap

Stocks fell after weaker-than-expected economic statistics fuelled concerns about the prospects for corporate America, amid a spike in consumers’ long-term inflation expectations to the highest level since 1995.

Investors were uneasy about Friday’s data on consumer mood, housing, and services, despite the fact that the Federal Reserve is not in a hurry to decrease interest rates. The S&P 500 fell more than 1.5%, while bonds rose. A total of $2.7 trillion in options connected to equities and ETFs were set to expire. This typically accentuates price movements. COVID-19 vaccine producers rallied as traders published prior information about a new coronavirus research in China, adding to the volatility.

The S&P 500 dropped 1.7%. The Nasdaq 100 declined 2.1%. The Dow Jones Industrial Average fell 1.7%, followed by a slump in UnitedHealth. The Dow Transportation Index declined 2.6%. The Russell 2000 fell 2.9%. A gauge of the Magnificent Seven megacaps fell 2.5%.

A late rebound in the Treasury market sent the 10-year note yield lower for the sixth week in a row, as traders seek shelter despite falling stock and oil prices. The yield on 10-year notes declined by eight basis points, to 4.43%. The dollar index increased 0.2%.