(Samuel Potter & Sarah Ponczek – Bloomberg)
U.S. stocks plunged for a second straight session, with the Dow Jones Industrial Average dropping more than 1,400 points and the S&P 500 Index enduring its steepest single-day decline since August 2015, erasing its gains for the year.
Treasuries and gold rallied as the equity markets deflated. Yields on core government bonds in Europe also fell. The pound slumped, and the euro declined. The dollar stabilized.
Equity investors are looking for confirmation that recent declines represent the healthy correction many had expected after the stellar start to the year. The downward move was sparked by U.S. wage data on Friday that pointed to quickening inflation, which would lead to higher rates and, in turn, rising borrowing costs for companies. Click here to read more.