Equities Hit As Economic Jitters Spur Bond Rally – US Market Wrap

Stocks fell to a five-week low, while bonds rose, as another disappointing figure on US consumer spending raised concerns about the health of the world’s largest economy.

Another decline in the Nasdaq 100 stretched its four-day loss to over 5%, the largest since early September. A megacap index fell by more than 10% from its peak, reaching the level required for a correction. Selling was heaviest among speculative market entrants, with a 6% decline in Bitcoin sparking a drop in exchange-traded funds specialising in cryptocurrency. A surge in Treasuries pushed 10-year rates to their lowest levels in 2025.

Consumer confidence in the United States plummeted to its lowest level since August 2021, because to concerns about the overall economic outlook. The data followed previous disappointments in the retail, services, and housing sectors. Traders have increased their bets on Federal Reserve rate reduction this year, even as inflation pressures appear to be growing.

The S&P 500 dropped 0.5%. The Nasdaq 100 declined 1.2%. The Dow Jones Industrial Average gained 0.4%. The gauge of the “Magnificent Seven” megacaps fell 2.2%. On the eve of Nvidia’s results, the stock fell 2.8%.

The yield on 10-Yr Treasuries fell 11 basis points, to 4.29%. Money markets are already pricing in more than two quarter-point cuts from the Fed in 2025. A dollar index fell 0.2%.