Stock market live updates: Stocks sink, Treasury yields jump as investors face hawkish Fed

U.S. stocks sank lower to start the week, extending a sell-off that began Friday after hawkish remarks by Fed Chair Jerome Powell at the central bank’s gathering in Jackson Hole.

The S&P 500, Dow Jones Industrial Average and Nasdaq each fell roughly 0.8% at the start of trading Monday.

Meanwhile in the bond market, the benchmark 10-year Treasury note surged above 3%, and the 2-year Treasury yield spiked to top 3.45%, its highest level since 2007.

The early moves in markets come after the Nasdaq plunged 3.9% on Friday and the S&P 500 tanked 3.3%, with both indexes logging their biggest one-day drops since June 13. The Dow erased 1,000 points during the session, or roughly 3%.

“Chair Powell’s speech was a good reminder that 2-year Treasury yields are more important to equity markets than whether the FOMC moves by 50 or 75 basis points at upcoming meetings,” DataTrek’s Nicholas Colas said in a Monday note, pointing out that U.S. large-cap stocks have been sensitive to the 2-year…

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This article was written by and originally published on finance.yahoo.com