The Nasdaq slumped 2% on Wednesday as tech stocks extended their selloff for a second straight day on mounting concerns over aggressive actions by the Federal Reserve to fight inflation, with minutes from the central bank's March meeting on tap.
High-growth stocks, whose valuations stand to be pressured by higher bond yields, bore the brunt as the benchmark 10-year yield hit a three-year high.Fed Governor Lael Brainard said on Tuesday she expected a combination of interest rate hikes and a rapid balance sheet runoff, sparking losses on Wall Street.
"The Fed minutes today will likely show an even more hawkish attitude by the Fed members. I think they'll point to a half-a-percent rise next month." Traders now see 83.1% odds of a 50 basis points rate hike at the central bank's meeting next month. IRPR, also known as Wall Street's fear gauge, rose to 24.36 points, its highest since March 21.
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