Stock Market Update

[BRIEFING.COM] The stock market opened to broad-based selling after the hotter-than-expected January inflation reading. The core-Consumer Price Index rose was up 3.3%, versus 3.2% in December, which doesn't bode well for future rate cuts by the Fed. 

Expectations for the next rate cut have shifted and Treasury yields surged in response to the data. The 10-yr yield jumped from 4.53% to 4.65%, keeping pressure on equities. The fed funds futures market has pushed back the likelihood of another rate cut to the September FOMC meeting from the July FOMC meeting, according to the CME FedWatch Tool. 

Just about everything has participated in downside moves. The equal-weighted S&P 500 shows a 0.9% decline and all 11 S&P 500 sectors are lower. The rate-sensitive real estate sector shows the biggest loss, down 1.6%. The technology sector is another notable decliner, down 1.1%, due to declines in NVIDIA (NVDA 130.86, -1.92, -1.5%), Microsoft (MSFT 407.54, -3.89, -1.0%), and Apple (AAPL 231.67, -0.97, -0.4%).

The health care sector was alone in positive territory earlier, boosted by a big earnings-related gain in shares of CVS (CVS 63.26, +8.30, +15.1%).