Rolling coverage of the latest economic and financial news
- Government bond yields hit one-year high
- Will inflation force central banks to raise interest rates?
- Last night, Nasdaq saw worst fall in four months
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Global Bond Market rout pic.twitter.com/5A3tn7cRvC
Bond yields pushing higher around the globe with the U.S. and U.K. leading the way pic.twitter.com/UUnR9eCZeV
U.S. stocks fell sharply Thursday as an outsized surge in bond yields spooked investors, who rushed to dump risk assets, especially high-flying technology names.
The Dow dropped 1.8%.
The S&P 500 fell 2.5%.
The Nasdaq tumbled 3.5%. https://t.co/l6Ut7bjPJL pic.twitter.com/7w51yeFWwT
Investors dropped their sovereign bond holdings like a hot potato as all new piece of data pointed at improvement in economic conditions and called for rising inflation.
Equities dived along with the sovereign bonds. Nasdaq led losses with a sizeable 3.52% drop as tech stocks fell big as a result of a mass migration from growth to value stocks. Nike, Caterpillar, Johnson & Johnson and Goldman Sachs were among the rare stocks finishing the session higher. Apple, Microsoft and Disney fell, as Tesla shed 8%.