Shifts within the bond market are removing a key pillar of support for Wall Street’s more speculative bets, dragging down major stock indexes as investors flee everything from tech stocks to cryptocurrencies.
Spooked in large part by rising bond yields, investors continued to dump stocks last week, extending early-year losses that have taken many off guard with their speed and severity. Once again, tech shares were at the forefront. Selling also broadened to include sectors such as banking and energy, sending the S&P 500 to its worst stretch of declines since the onset of the Covid-19 pandemic.