S&P 500 Set to Enter Bear Market as Inflation Fans Growth Fears
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US stock futures dropped, pointing to an extended selloff that is set to push the S&P 500 Index into a bear market, after Friday’s stronger-than-expected US inflation data sparked expectations of even more aggressive interest-rate hikes.
Contracts on the S&P 500 were down 2.1% as of 7:05 a.m. in New York, while Nasdaq 100 futures fell 2.7%. A sharp slump in stocks on Friday after the consumer prices data left the S&P 500 down nearly 19% from its January high, nearing the 20% level that denotes a bear market. The US two-year yield exceeded the 10-year for the first time since early April as investors dumped short-term debt.