Shares of banks and other financial institutions slid amid fears that strong economic data had altered the Federal Reserve's likely interest-rate path.
The yield on the policy-sensitive two-year Treasury saw its largest one-day gain in a month after reports of easing Covid-19 restrictions in China and stronger-than-anticipated U.S. services activity. Traders are now debating whether the recent surge in U.S. stocks, predicated on a down-shift in the size of Fed rate increases, was nothing but a fleeting "bear market rally," said Edward Moya, senior market analyst at foreign-exchange brokerage Oanda Group, in a note to clients.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
12-05-22 1707ET
