Stocks got hit at the start of a historically tough month for the market, with investors bracing for economic data that will show whether or not the Federal Reserve will need to be aggressive with rate cuts.
Wall Street traders took risk off the table, with the S&P 500 seeing its worst slump since the Aug. 5 market meltdown. That’s after a rally that put the benchmark within a striking distance of its all-time highs. The gauge’s most-influential group — technology — sold off on Tuesday, with Nvidia Corp. driving a plunge in chipmakers. Energy shares tumbled as oil erased its 2024 gains. Wall Street’s “fear gauge” – the VIX – topped 18. Bonds climbed.
With inflation expectations fairly anchored, attention has shifted to the health of the economy as signs of weakness could speed up policy easing.
While rate…
