Risk Aversion Sinks Market High Flyers as Fed Cut Hopes Dim

Federal Reserve policymakers are flying blind after the US government shutdown starved them of crucial data, and the uncertainty is testing the nerves of investors.

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. The S&P 500 lost 1.7%, while the technology-heavy Nasdaq 100 tumbled 2%.