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Stock Selloff Deepens on Fed Taper, Growth Worries: Markets Wrap

Mount Equity Group Tokyo, Japan > News > Markets > Stock Selloff Deepens on Fed Taper, Growth Worries: Markets Wrap

(Bloomberg) — U.S. stock-index futures plummeted, while Treasuries and the dollar rallied, amid concern the Federal Reserve may start tapering stimulus this year even as the delta virus variant undermines global growth.

Futures on the S&P 500 Index lost 0.9%, while a gauge of world stocks headed for the worst week since February. The 10-year rate shed three basis points and the greenback headed for a nine-month high. U.S.-listed Chinese stocks including Alibaba Group Holding Ltd. plunged in premarket trades amid tightening Chinese regulations. Oil declined for a sixth day.

Investors are bracing for the withdrawal of unprecedented liquidity as the developed world looks to mass vaccinations to keep the recovery on track. However, the persistent spread of coronavirus and slowing China growth raise questions about whether the global economy can absorb the shock of reduced support.

“I don’t think anybody will be surprised if tapering…

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