Equities, Bonds Decline in Broad Retreat from US Assets – US Market Wrap

Wall Street saw heavy selling on Monday, with longer-dated Treasuries joining stocks and the dollar in a deepening drop, as Trump rejected Jerome Powell’s interest-rate strategy, causing concern among investors already coping with a global trade war.

Trump’s assurances that tariff talks were moving forward did little to halt the rout. The S&P 500 and other major US stock indices fell about 2.5% apiece in modest trade, as the dollar index fell to a 15-month low. The benchmark 10-year note declined, with the yield reaching 4.4%. As investors turned away from US securities, haven assets rose. Gold hit a new high of more than $3,400 per ounce, while the Swiss franc rose by around 1% against the dollar.

The agitation moved to the US credit sector. In derivatives, the cost of insuring a basket of high-grade credit securities against default increased to its highest level in more than a week. Three investment-grade corporations considered selling bonds on Monday, but after seeing the market backdrop, two chose to hold off, with just American Express proceeding with the offer.