U.S. stocks tumbled Thursday, while Treasury yields sank for a fourth day, as investors unwound bets on a spell of high growth and inflation.
All three major U.S. stock indexes suffered their worst daily performance in nearly three weeks as investors across the globe retreated from risky assets. The broad-based selloff across U.S. equities marked a sharp reversal from last week, when indexes drifted higher, notching repeated records.
In contrast, the S&P 500 on Thursday lost 37.31 points, or 0.9%, to finish at 4320.82, the benchmark index’s worst performance since June 18. The Dow Jones Industrial Average fell 259.86 points, or about 0.7%, to close at 34421.93.
The technology-heavy Nasdaq Composite, meanwhile, dropped 105.28 points, or 0.7%, to 14559.78. All three indexes suffered much steeper falls earlier in the day, with the Dow losing more than 530 points. But all three pared their losses as the session continued.
Thursday’s selloff across the U.S. market came as investors have grown increasingly concerned about labor shortages and supply-chain bottlenecks, which many forecast may crimp the pace of economic recovery. The spread of the highly contagious Delta variant of the coronavirus globally is adding to worries.