Live Nasdaq Composite: Markets Retreat as Inflation Bites in High-Oil Economy

"Consumer prices climbed 3.8% year-over-year, the steepest rise in three years, fueled largely by surging energy costs linked to the war with Iran. Core CPI rose 2.8%, edging past the 2.7% forecast. Energy prices surged 18% annually, with gasoline up 28% and fuel oil jumping 54%. Today WTI Crude oil is hovering back above $100/barrel."

""The American economy has entered a new chapter where inflation appears to have stepped up," says Joseph Brusuelas, chief economist at RSM cited by the WSJ. He predicts the headline rate moving to 4% later this year. "Median American families are going to find it very challenging to adjust going into the second half of the year.""

"U.S. yields climbed Tuesday as investors digested the hotter-than-expected inflation print, with consumer prices hitting their highest level in nearly three years. The 10-year yield, the go-to benchmark for mortgages, auto loans, and credit card rates, edged up 3 basis points to 4.443%. The 2-year yield, which shadows Fed rate expectations, rose more than 4 basis points to 3.989%, while the 30-year bond ticked up nearly 2 basis points to settle at 5.011%."

"Here's a look at where things stand as of morning trading: Dow Jones Industrial Average: 49,529 Down 0.60% Nasdaq Composite: 29,244 Down 0.66% S&P 500: 7,405 Down 0.43%"

Markets opened under pressure after April CPI came in hotter than expected. Consumer prices rose 3.8% year over year, the steepest increase in three years, driven largely by surging energy costs tied to the war with Iran. Core CPI increased 2.8%, slightly above the 2.7% forecast. Energy prices climbed 18% annually, with gasoline up 28% and fuel oil up 54%, and WTI crude hovering above $100 per barrel. U.S. yields rose as investors digested the inflation data, with the 10-year yield up 3 basis points to 4.443%, the 2-year yield up more than 4 basis points to 3.989%, and the 30-year bond up nearly 2 basis points to 5.011%. Major indices were down modestly in early trading.

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