Financial Markets Wall Street FILE – A sign for Wall Street is carved in the side of a building on Nov.
Prices for beef, electricity and other items that consumers paid in October surged from year-ago levels at the fastest overall pace since 1990, raising expectations that the Federal Reserve will have to hike short-term interest rates more quickly off their record low.
Rising yields tend to be a drag on stocks, particularly those seen as the most expensive or whose expectations for big profit growth is furthest in the future.
Bitcoin, which some proponents see as offering similar protection from inflation as gold, likewise climbed.
In the stock market, higher yields tend to favor stocks that look cheap, or at least cheaper than their peers.
Drops for some high-growth and tech stocks caused the heaviest weights on the market because they’re among the bigest companies by value.
Tesla also regained some of its lost ground from the prior two days after its CEO, Elon Musk, said that he would sell 10% of his stake in the company.
Stocks have been rising broadly in recent weeks, powered by reports showing corporate profits were even stronger during the summer than analysts expected.
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