Investors rushed to the safety of the U.S. dollar, while global stocks slid ever closer to a bear market, as the Federal Reserve’s aggressive tightening path and China’s Covid lockdowns worsened the outlook for economic growth.
The greenback extended a two-year high, rising on Monday against all of its major peers. Futures on the S&P 500 and Nasdaq 100 gauge each tumbled by at least 2%, as the MSCI gauge of world stocks extended its retreat from a November peak to 16%. Oil declined more than 2.5% as concern over slowing demand in Asia outweighed a Group-of-Seven pledge to ban Russian oil. Most Treasuries fell, with the five-year rate briefly jumping to the highest since 2008.