CPI came screaming in this morning at 0.4% against expectations of 0.3%. That’s hot in anyone’s book - and you could almost hear the market cry as its hopes of a summer rate cut up and died.
The S&P 500 started weak and got weaker along the way to a 0.95% loss for the day. Still, it could have been worse. Tech names like Meta and Nvidia actually managed a move higher.
Interest rates are going to be the killer here. The yield on the 10-year Treasury is closing in on 5% - really ugly. We’re seeing some of the biggest volume in the bond market in recent history, and as we’ll see in a minute, it ain’t good.
Let’s take a look…