MSCI’s benchmark, the S&P 500 and a key European index surged to record highs after the U.S. Labor Department said the consumer price index in the 12 months ended in May accelerated 5.0%, the biggest year-on-year increase since August 2008.
In a sign of market complacency, the 10-year U.S. Treasury note’s yield fell 1.2 basis points to 1.4772% after earlier rising above 1.5% following the data’s release.
On Wall Street, the Dow Jones Industrial Average rose 0.35%, the S&P 500 gained 0.45% and the Nasdaq Composite added 0.49%.
A surprisingly strong U.S. inflation print in April spooked investors, sparking a cautious run into Thursday’s of May data.
Short positions in Treasuries were the highest since 2018, according to JP Morgan positioning data last week.
Subadra Rajappa, ” Rajappa, Joseph LaVorgna, ” LaVorgna, “, ”, MSCI’s
U.S . Labor Department, Treasury, Societe Generale, Americas, Dow Jones, Nasdaq, European Central Bank, Morgan
New York, Natixis, U.S, Treasuries