From Nasdaq:

Wednesday’s CPI report drove a selloff in the markets, with the Nasdaq-100 ETF down nearly 2%, the Nasdaq Mid-Caps ETF also down, and the Nasdaq Small-Caps ETF dropping 5.5%.

The disappointing CPI report also pushed up rates, with 10-year Treasury yields rising 15bps to 4.3%, and expectations for the first Fed rate cut pushed back to June from May.

Headline CPI inflation slowed to 3.1% YoY, but core (which excludes food and energy) was unchanged at 3.9% YoY, higher than expected due to housing and core services ex housing.

Leading indicators suggest that new rent inflation and the quits rate will point to slowing housing inflation and wage-driven core services inflation in the coming months.

Overall, leading indicators for key drivers of inflation suggest markets may have overreacted to January’s CPI data, with further slowing expected.



Read more: CPI Data Drives Selloff | Nasdaq