Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.1%) has entered negative territory after a steady decline from opening highs. 

There is broad-based selling activity as ten sectors trade in the red, with the health care (-1.6%), materials (-1.4%), and financials (-1.3%) sectors showing the most early weakness.

Following some knee-jerk volatility in the wake of the CPI report at 8:30 a.m. ET, Treasuries have encountered some more intensive selling interest.

Yields have pressed higher across the curve, with inflation concerns seemingly winning out at the moment, as the CPI report contained some pockets of tariff-driven inflation.

There are some shifting expectations for a rate cut at the September FOMC meeting (July is off the table), with the CME FedWatch Tool showing only a 54% probability now of at least a 25 basis point cut at the September FOMC meeting versus 62.6% a day ago.