Stocks slumped on fears that rising inflation may jeopardize the global economic recovery, prompting central banks to raise interest rates sooner than expected. treasuries rose.

Traders took some risk off the table as data revealed a slowdown in new home development in the United States, implying that builders are struggling to break ground on projects due to high material prices and continued labour shortages. Target Corp. fell after warning that cost pressures are increasing, fueling fears that inflation may eat into retailer profitability. The NASDAQ 100, which is heavy on technology, beat key indexes, spurred by a rally in tech titans Apple and Tesla.

According to GS' CEO Solomon markets may face a rough period as the economy attempts to recover from the rapid impact of the epidemic. If interest rates rise, it will "take some of the euphorias out of some markets," he said in an interview at the Bloomberg New Economy Forum in Singapore.

The worst quarter for the S&P 500 since the pandemic appears to have scared off some do-it-yourself investors. According to the SEC and market data compiled by major newswire Intelligence, the retail trading surge that began with lockdowns has now subsided, with total equity volume from individual investors falling to 19% in the third quarter, down from 24% at the start of the year.