(Bloomberg) – Volatility continued to disrupt risky assets, with energy prices rising and US stocks slipping into their worst quarter since the start of the pandemic.

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The S&P 500 fell to session low. A poor forecast at Bed Bath & Beyond and supply chain concerns at Kohl’s retailers drove the drop. Oil resumed its advance, while natural gas soared.

Traders cited a Politico report as saying Senator Joe Manchin offered a deal to Majority Leader Chuck Schumer this summer to limit the total cost of the Democrats’ spending bill to $ 1.5 trillion. House Speaker Nancy Pelosi has said she is moving forward with a vote on a bipartisan infrastructure bill, despite threats from Progressive Democrats. In a House hearing on Thursday, Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen blamed the supply disruption for soaring inflation.

Shares were rocked by fears that the Federal Reserve would start to withdraw monetary support. Supply disruptions have resulted in higher prices and shortages of key manufacturing inputs. And political wrangling in Washington threatens to push the United States into default and force President Joe Biden to cut his spending program.

Read: China orders top energy companies to secure supplies at all costs

Here are some events to watch this week:

  • Univ. of Michigan sentiment, Manufacturing ISM, US construction spending, spending / personal income, Friday

For more market analysis, read our MLIV blog.

Some of the main movements in the markets:

Actions

  • The S&P 500 fell 1% at 12:14 p.m. New York time

  • The Nasdaq 100 fell 0.4%

  • The Dow Jones Industrial Average fell 1.4%

  • The MSCI World index fell 0.6%

Currencies

  • The Bloomberg Dollar Spot Index changed little

  • The euro fell 0.3% to $ 1.1565

  • The British pound rose 0.1% to $ 1.3447

  • The Japanese yen rose 0.4% to 111.49 per dollar

Obligations

  • The yield on 10-year treasury bills was little changed at 1.52%

  • German 10-year rate rose one basis point to -0.20%

  • UK 10-year yield rose three basis points to 1.02%

Merchandise

  • West Texas Intermediate crude rose 0.8% to $ 75.40 a barrel

  • Gold futures rose 2.1% to $ 1,758.50 an ounce

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