Bonds & Stocks
Stocks got hit and bond yields soared as traders pushed out bets on the next Federal Reserve rate cut to December amid strong inflation. Every major group in the S&P 500 fell, with the benchmark down about 1%. Treasuries tumbled, with benchmark 10-year yields climbing 10 basis points to 4.63%. A selloff in major exchange-traded funds tracking both asset classes showed the market was poised for its worst cross-asset reaction to the consumer price index in about a year. The dollar climbed.
Economy
US inflation picked up broadly at the start of the year, further diminishing chances the Federal Reserve will cut interest rates anytime soon. The consumer price index rose 0.5% last month, the most since August 2023 and led by a range of household expenses like groceries and gas. Shelter accounted for nearly 30% of the advance, according to the report from the Bureau of Labor Statistics out Wednesday.
World
Major energy companies have struck an upbeat tone on the outlook for oil demand this year and beyond, even in the face of the potential trade war triggered by President Donald Trump’s salvo of tariffs. Oil consumption will continue to expand into the 2030s, amid population and economic growth and widespread gains in living standards, Shell Plc said Wednesday in a long-term energy outlook.