Stocks swing, yields soar on hottest inflation in 40 years

By STAN CHOE
AP Business Writer

NEW YORK (AP) — Stocks are swinging Thursday as expectations build that the Federal Reserve will have to get more aggressive about removing the support it’s given the economy. The hottest inflation reading since 1982 sent the S&P 500 down 0.2% in morning trading. It also sent Treasury yields jumping, as traders built up bets the Fed may have to apply the brakes to the economy with a big hike in interest rates. The yield on the 10-year Treasury briefly topped 2% for the first time since 2019. The S&P 500 came back from an early 1.2% loss as oil producers and other stocks that would benefit from higher inflation and rates rose.