Stocks in Asia and U.S. and European futures extended a global selloff Thursday as the rout in technology shares accelerated after the Federal Reserve signaled interest-rate hikes may be more aggressive than many had expected. Treasuries held losses. An MSCI Inc. index of the region’s equities retreated for the third day in four with a gauge of tech shares among the worst performing. The Nasdaq 100 tumbled the most since March Wednesday as rising Treasury yields added to concerns over growth and profitability. The S&P 500 retreated as traders increased bets U.S. rates will rise at least three times this year. The yield on the U.S. 10-year note held at the highest since April. Overnight swaps markets moved to price in an 80% chance of a 25 basis-point hike at the Fed’s meeting in March. The dollar was little changed, while the yen climbed. A selloff in Chinese tech companies continued on concerns firms will pare holdings amid Beijing’s regulatory crackdown on the sector. The Hang Seng Tech Index fell for a fourth day.
Investors fear tightening monetary policy will choke global growth and crimp company profits just as the omicron Covid variant leads to fresh curbs. Fed officials said a strengthening economy and higher inflation could lead to earlier and faster rate increases than expected, with some also favoring moves to shrink the balance sheet soon after.
Meanwhile, restrictions are coming back in some places in the face of omicron. Hong Kong reimposed social curbs and halted flights from eight countries. Tokyo raised the alert level after reporting almost 400 new cases in one day. China brought in new restrictions for people traveling from the U.S. as cases there climb.
More geopolitical ructions emerged. Russia and its allies said they would send troops to back Kazakhstan’s president amid protests. Russia is already at the heart of a simmering conflict regarding Ukraine.
Nikkei -2.88% Hang Seng -0.39% CSI -1.02% Shanghai -0.23% Shenzen -0.10%
Eur$ 1.1310 CNH 6.3821 CNY 6.3762 JPY 115.91 GBP 1.3532 CHF 0.9179 RUB 77.0420 TRY 13.7050 WTI$ 76.78 -1.37% Gold 1,806.77 -0.21% BTC 43,150-1% ETH 3,470 -2045%
S&P -0.25% Nasdaq -0.41% EuroStoxx -1.70% FTSE -1.38% Dax -1.34% SMI -1%
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