Treasuries Rally After CPI Seen Pushing Off Taper: Markets Wrap
- Financials, energy shares lead S&P 500 lower; oil erased gain
- Dollar fluctuates versus major peers; gold increases
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Treasuries rallied and U.S. stocks declined after a less-than-forecast increase in inflation was seen as giving Federal Reserve officials more flexibility when it comes to pulling back on stimulus. The dollar fluctuated.
Yields on benchmark 10-year notes fell 5 basis points to 1.26%, narrowing the yield gap between short- and longer-maturity U.S. debt. The financial, industrial and energy sectors led the S&P 500 lower even after the Labor Department reported that the consumer price index increased 0.3% from July. Economists called for a 0.4% gain. The Dow Jones Industrial Average was weighed down by Goldman Sachs Group Inc. and Caterpillar Inc.