Hot inflation report slams bond market, sends stocks lower

By DAMIAN J. TROISE and STAN CHOE
AP Business Writers

NEW YORK (AP) — An eye-opening report on inflation that was hotter than expected slammed into the bond market on Wednesday, sending yields jumping, and helping knock stocks lower. The sharpest inflation since 1990 forced investors to boost bets that the Federal Reserve will have to raise short-term interest rates more quickly off their record low. That in turn sent Treasury yields to their biggest gain in months. Higher yields tend to hurt expensive and high-growth stocks, and the S&P 500 fell 0.8%. Gold and Bitcoin both rose amid the inflation worries. The yield on the 10-year Treasury note rose to 1.57% from 1.43% late Tuesday.