US Equity Indexes Fall, Treasury Yields Jump Amid Hot Inflation Print

US equity indexes fell in Tuesday's midday trading as a hotter-than-expected inflation print for April hit technology and consumer discretionary shares.

The Nasdaq dropped 1.2% to 25,939.2, with the S&P 500 down 0.8% to 7,356.5 and the Dow Jones Industrial Average lower by 0.5% to 49,435.8. Technology and consumer discretionary sectors led the decliners.

The US seasonally adjusted consumer price index jumped by 3.8% in April from 3.3% in the prior month, according to data released Tuesday by the Bureau of Labor Statistics, compared with the 3.7% consensus. Core CPI, which excludes food and energy prices, climbed by 2.8% from 2.6%, versus expectations for 2.7%.

The CPI increased 0.6% in April, as expected, following a 0.9% increase in the previous month. Core CPI gained 0.4%, higher than the consensus estimate for a 0.3% increase. Core CPI rose by 0.2% in March.

US Treasury yields jumped, with the 10-year up 4.1 basis points to 4.45%, the highest since about July. The two-year rate jumped 4.9 basis points to almost 4%, the strongest since June.

Meanwhile, oil prices rose as a faltering ceasefire between the US and Iran kept the Strait of Hormuz closed, continuing the largest-ever energy supply shock.

West Texas Intermediate crude oil futures jumped 3.6% to $101.58, and Brent crude futures increased 3.4% to $107.63.