Stocks Buckle Under Hot CPI as Hawkish Bets Surge: Markets Wrap
- Inflation tops estimates, amping up Fed pressure to go big
- Swap market shows traders ramp up wagers on full-point hike
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Stocks finished lower as a shockingly hot US inflation report rattled financial markets, boosting bets the Federal Reserve could get even more aggressive with its belt-tightening campaign.
Amid unnerving swings, the S&P 500 failed to hold gains after reversing a 1.6% slide. Also weighing on sentiment were hawkish signals from Fed Bank of Atlanta President Raphael Bostic, who said “everything is in play” to combat price pressures. Swap markets shifted to price in a full-point hike as more likely than a 75-basis-point increase in July.