Brutal volatility continued to grip financial markets, roiled by the threat that restrictive policy by major central banks will throw the global economy into a recession.
Stocks traded off session lows, pushing the S&P 500 away from its bear-market threshold, after Federal Reserve Bank of San Francisco President Mary Daly told Bloomberg News that a 75-basis-point increase in rates is "not a primary consideration."
The caution born from rising rates held firm Thursday as data showed prices paid to US producers rose more than forecast in April, reinforcing bets the Fed will further tighten policy.
While the main American equity indexes have lost more than $6 trillion since March 29, Mark Mobius told CNBC the S&P 500 is "probably going to go lower," adding that "we are not at a bottom, but may be at the beginning of one. A bottom needs everyone to give up hope."
For Citigroup Inc. strategists, growth stocks – including the battered tech sector — will likely remain under pressure as central banks tighten policy.
The greenback rose against all but one of its major peers amid growth fears.
The euro hit a five-year low, the Swiss franc weakened to reach parity with the dollar for first time since 2019 and Hong Kong's Monetary Authority intervened to defend its currency peg.
