Stocks dropped after solid economic readings and a rally in commodities spurred speculation that major central banks will keep interest rates higher for longer.
In a revival of the “good news is bad news” trade, better-than-estimated data on US job openings and factory goods orders added to skepticism about the pace of Federal Reserve easing. With traders now projecting fewer rate cuts in 2024 than the Fed itself, 10-year yields hit the highest levels since November. That weighed on the equity market — which had been ignoring the repricing of central-bank bets in the last few months amid a torrid rally.