Bonds Crushed by CPI as Nasdaq 100 Erases 1% Loss: Markets Wrap
- US inflation tops forecasts, bolstering case for Fed to hold
- Trump, Putin agree to talks on war in Ukraine in policy shift
Wall Street traders sent bond yields soaring after hot inflation data spurred bets the Federal Reserve won’t have much room to cut rates, though stocks pared most of Wednesday’s losses as tech buyers stepped in. Oil sank as the US agreed with Russia to begin talks on ending the war in Ukraine.
Treasury 10-year yields soared the most since Dec. 18 when hawkish Fed signals rattled trading. Money markets are now projecting the first - and only - US rate reduction late this year. Almost every major group in the S&P 500 fell, though the gauge trimmed most of a 1.1% slide as Tesla Inc. led gains in megacaps and Meta Platforms Inc. rose for an 18th straight session. For the first time since November, the Nasdaq 100 erased an intraday loss of 1%. In late hours, Cisco Systems Inc. jumped on an upbeat sales forecast.