Stocks drop, bonds advance amid Fed, Ukraine concerns

Stocks drop, bonds advance amid Fed, Ukraine concerns

Stocks















Bloomberg

Equities in Europe declined on Monday and US futures reversed gains as the rout in technology stocks deepened amid concerns over the Federal Reserve’s imminent rate liftoff. Bonds gained.

Tech stocks were among the largest decliners as the Stoxx Europe 600 index dropped almost 2%, on track for the biggest two-day slump since October. Tensions between Russia and Ukraine exacerbated the risk-off mood, with Russia’s benchmark stock index tumbling as much as 4.4% and European shares with exposure to the region also under pressure.

US equity futures edged lower, dimming hopes of some respite after one of the worst stretches for global shares last week since the pandemic began. Contracts on the tech-heavy Nasdaq 100 turned lower after climbing as much as 1% earlier. The Treasury 10-year yield dipped along with rates on most European bonds. A dollar gauge ticked higher.

The Fed on Wednesday is expected to signal a March hike in interest rates and balance-sheet reduction later this year to help fight inflation. Ebbing stimulus is forcing a rethink about the economic and the market outlook.

Aside from the Fed and Ukraine, earnings updates from titans such