U.S. stocks sank and Treasury yields spike higher after the hottest inflation reading in four decades prompted a Federal Reserve official to call for accelerating rate hikes.
The two-year bond rate surged as much as 26 basis points in one of the fastest moves in a decade after data showed consumer prices surged more than 7% last month. St. Louis Fed Chair James Bullard said the central bank should raise rates by 100 basis points over the next three meetings. That sent risk assets tumbling, with the S&P 500 sliding 1.8% and the tech-heavy Nasdaq 100 dropping 2.3%.
