Risk Aversion Sinks Market High Flyers as Fed Cut Hopes Dim

A sudden bout of risk aversion shook markets on Thursday, leading to a sharp plunge in some of this year’s highest flying stocks and worsening a recent slump in cryptocurrencies. Many traders pointed to the dwindling probability that the Fed will reduce interest rates again in December as the most likely trigger for the selloff. Swaps traders are pricing in about a 50% chance of a cut, down from 72% a week ago, with Fed officials failing to signal conviction for such a move in recent remarks.