S&P 500 Hit by Fed-Pivot Rethink and War Jitters: Markets Wrap
- US core CPI rises more than forecast for third straight month
- Yields soar as traders price in just two Fed rate cuts in 2024
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Wall Street traders sent stocks and bonds sliding after another hot inflation report signaled the Federal Reserve will be in no rush to cut rates this year. Oil climbed as geopolitical jitters resurfaced.
Equities extended their April losses, with the S&P 500 down about 1% as the consumer price index beat forecasts for a third month. In a hawkish reprice of the Treasury curve, 10-year yields topped 4.5% and Fed swaps are now showing bets on only two rate cuts for 2024. A sharp reversal in oil also weighed on sentiment, with Bloomberg News reporting the US and its allies believe major missile or drone strikes by Iran or its proxies on Israel are imminent.