A surprise increase in January’s consumer price index (CPI) has sparked concerns about inflation, causing stock futures to plummet and interest rates to spike.
The CPI rose 0.5% for the month, exceeding economist expectations of 0.3%. This has led to an annual inflation rate of 3%. The core CPI, which excludes volatile food and energy prices, also rose 0.4% in January and 3.3% over the past 12 months, further fueling inflation worries.
As a result, the 10-year Treasury yield surged above 4.6%, a benchmark for mortgage rates and lending rates. This has led to a decline in stock futures, with the Dow Jones Industrial Average falling 386 points, or 0.9%, and the S&P 500 and Nasdaq 100 futures also dropping 0.9% and 1%, respectively.
Source (CNBC)
