US stocks and treasuries fell as Federal Reserve officials reaffirmed their commitment to fighting inflation and warned of more pain to come.
For the second session in a row, the S&P 500 and the tech-heavy Nasdaq 100 fell. Commodities ranging from oil to copper fell, while the dollar reversed a two-day decline.
10-year treasury yields in the United States rose after St. Louis Fed President James Bullard said policymakers should raise interest rates to at least 5% to 5.25% to combat inflation. He also predicted more financial difficulties in the future.
With inflation only just beginning to ease and a measure of US retail sales rising at the fastest rate in eight months, Fed speakers in recent days have emphasized the importance of going further to alleviate price pressures. Bullard's remarks came a day after San Francisco Fed President Mary Daly said a rate hike pause was "off the table." On Thursday afternoon, Minneapolis Fed President Neel Kashkari echoed their hawkish tone.