Sizzling inflation that helped send 2-year U.S. Treasury yields to fresh 14-year highs continued to burn some of the winners of the so-called pandemic bubble Friday.
The fund is now trading nearly 20% below the high it reached in late August, when investor hopes that the Federal Reserve would pause in raising interest rates helped the fund surge 40% from a two-year low reached in May. The fund is down nearly 55% for the year to date. Other speculative assets, including Bitcoin and meme stock AMC Entertainment Holdings Inc, fell Friday as well, with the movie theater operator losing around 5% and Bed Bath & Beyond Inc tumbling 5.2%.
Higher-than-expected inflation data released on Tuesday has pushed investors to price in more aggressive rate hikes by the Fed. Markets are now forecasting a 16% chance that the central bank will raise benchmark rates by 100 basis points at its meeting ending Sept. 21, up from a 0% chance one week ago..