Contracts for the S&P 500, Dow and Nasdaq sank sharply after printing. Bond yields jumped to the short end of the curve and the 2-year yield jumped to the upper 2.9%. The yield on the 10-year benchmark bond fell to just over 3%. US crude oil prices jumped and traded above $ 122 a barrel, keeping it close to its highest level since March. For market participants, the publication of the Consumer Price Index (CPI) by the Bureau of Labor Statistics was a key imprint, offering a fresh look at the extent to which price increases have been sustained throughout the US economy. The index accelerated unexpectedly to record an annual increase of 8.6% in May, after rising 8.3% in April. This marked the biggest jump since the end of 1981, eliminating the previous 41-year high on the CPI in March, which rose 8.5%. On a monthly basis, the CPI also increased by 1.0%, or more than the expected increase of 0.7% and an increase of 0.3% in April. Core inflation, which does not include volatile food and energy prices, rose 6.0% year-on-year after rising 6.2% in April. Inflation has remained a major issue for investors, policymakers and the American public this year. Higher prices have threatened to burden consumer spending – the mainstay of US economic activity – as goods and services become increasingly inaccessible. And inflation has already shown signs that it is triggering a shift from spending on certain discretionary products to other market segments. For investors, inflation has also been a key driver in moving the Federal Reserve forward. As the Fed aims to help reduce rapidly rising prices, the central bank is widely expected to raise interest rates by another half a point at next week’s policy meeting, further raising the cost of corporate lending and business. The story goes on Amid these concerns about the impact of inflation on the economy and the Fed’s subsequent moves, stocks continued to trade volatile. Each of the three main averages was well on its way to recording a consecutive week of losses, based on Thursday’s closing prices. The S&P 500 was down about 2% on a weekly basis. “At the end of the day, markets are just facing a lot of uncertainty right now. And it’s not just this inflation story,” Jack Manley, global market analyst at JPMorgan Asset Management, told Yahoo Finance Live on Thursday. “We still have some uncertainty, some uncertainty about what the Fed is going to do. The war in Europe continues to rage. And we know there are new developments on this front every few days.” “There is a lot to assimilate at the moment. And without any real clarity on these things, it is difficult for markets to actually move higher or lower,” he added. “It’s all the markets want at the end of the day, it’s new. And no news is bad news.” –
7:14 a.m. ET: Gross futures before inflation data
Here were the main moves in the markets from 7:14 a.m. ET:
S&P 500 Futures (ES = F): -6.25 points (-0.16%) at 4,010.00 Dow futures (YM = F): -85 points (-0.26%) at 32,178.00 Nasdaq Futures (NQ = F): +6.25 points (+ 0.05%) at 12,281.25 Crude (CL = F): + 0.94 $ (+ 0.77%) at $ 122.45 per barrel Gold (GC = F): $ -8.20 (-0.44%) to $ 1,844.60 per ounce 10-year Treasury (^ TNX): -0.7 bps for a yield of 3.035%
NEW YORK, NY – JUNE 03: Traders work on the floor of the New York Stock Exchange (NYSE) at the beginning of trading day on June 3, 2022 in New York. A new job report released by the Department of Labor this morning shows that employers added 390,000 jobs in May. Shares fell in anticipation of Friday’s opening campaign, putting the indexes back in the red for the week. (Photo by Spencer Platt / Getty Images) – Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter. Read the latest financial and business news from Yahoo Finance Follow Yahoo Finance on Twitter, Instagram, YouTube, Facebook, Flipboard and LinkedIn
