- As a scorching inflation reading roiled financial markets, US stocks plunged the most in a month and bond yields surged higher.
- After a 30-year treasury auction yielded greater than expected, the S&P 500 fell 0.8%, extending earlier losses. Two-year yields also jumped as statistics revealed the fastest annual inflation rate since 1990, upending bets on when the Fed will raise rates next.
- The Nasdaq 100 led markets lower, as its highly valued tech members are thought to be the most vulnerable to inflation. The dollar reached a 52-week high, oil fell more than 3%, and gold rose.
- Stocks and bonds are becoming riskier as persistently high inflation forces the Federal Reserve to taper at a quicker pace or raise interest rates sooner than expected.
- The consumer price index in the US jumped 6.2% in October, exceeding predictions of 5.9%.
- Yellen restated her belief that high inflation in the US will not last beyond next year, and that the Fed will not accept price increases similar to those seen in the 1970s. Traders are concerned that the recent data may be enough to persuade the Fed to increase rates as soon as June 2022, when it will have completed tapering its asset-purchase programme.
- The five-year breakeven rate on government inflation-protected securities in the US hit a new high. In the meantime, the yield on the 10-year US Treasury note rose 13 basis points to 1.56%.
- After setting a new high, bitcoin's gains were wiped. Due to China's real-estate woes, iron ore prices have dropped. while equities in Europe rose, while those in Asia sank.
