The benchmark index sank 2.3% Friday for its worst loss since February, only to rise 1.3% Monday as investors reconsidered whether the reaction was overdone, before giving way to Tuesday’s loss.
If Omicron does ultimately do heavy damage to the global economy, it could put the Federal Reserve in a difficult spot.
Powell acknowledged in his testimony before Congress that inflation has been worse and lasted longer than the Fed expected.
One signal in the bond market was also flashing some concern about the economy’s prospects.