(Bloomberg) — Stocks and bonds retreated as data showing US business activity accelerated amid a pickup in inflation reinforced bets the Federal Reserve will remain on hold.
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The S&P 500 dropped below 5,300, with all megacaps down except Nvidia Corp. The giant chipmaker jumped over 9% on a solid outlook, topping the historic $1,000 mark. The Dow Jones Industrial Average lost 1.5%, led by a plunge in Boeing Co. — which said it will continue to burn cash this quarter and in the full year. Treasury yields climbed, with the move led by shorter maturities.
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Swaps now fully price in a full quarter-point rate cut in December, versus November a day earlier. Growth in activity at service providers this month was the fastest in a year and manufacturing output expanded at a quicker pace. Such resilience is making it difficult for inflation to cool, helping…
