The selloff in U.S. markets showed signs of easing, following the biggest rout in stocks and bonds since June, as investors awaited comments from a Federal Reserve official. Markets from Asia to Europe retreated.
The S&P 500 Index slipped as a decline in commodities weighed on resources producers, though selling that took the measure down 2.5 percent Friday slowed. The yield on 10-year Treasuries held at the highest since June amid concern that central banks are preparing to wean markets off stimulus. Shares in Europe and Asia, which were closed Friday when the selloff began, dropped Monday by the most since the aftermath of the Brexit vote. Oil fell toward $45 a barrel. The yen advanced and the won slid.
While financial markets were jolted out of a period of calm by an uptick in concern over the outlook for central bank policies, futures traders on Monday are assigning just a 26 percent chance of a rate hike at the Fed’s September meeting.