U.S. stocks suffered their worst monthly rout since March 2020 after markets were repeatedly pummeled by the Federal Reserve’s resolve to keep raising interest rates until inflation is under control.
The S&P 500 closed a volatile session lower. The index posted its third straight quarter of losses for the first time since 2009. U.S. Treasuries dropped Friday after a late selloff into the month-end, with the benchmark 10-year yield around 3.82%.
Fed Vice Chair Lael Brainard briefly assuaged concerns on Friday after she acknowledged the need to monitor the impact rising borrowing costs could have on global-market stability. But markets continued to be on the edge as investors contended with continued strength in personal consumption expenditure, one of the Fed’s preferred inflation gauges.
