Stocks Decline After Tepid Treasury Bond Auction

Stocks dropped from record highs and and bond yields jumped after a U.S. debt auction was met with tepid demand in the wake of data showing consumer inflation unexpectedly accelerated in June. Yields climbed after the Treasury Department sold $24 billion in 30-year bonds at levels higher than just before the bidding deadline. Technology shares had rallied earlier, pushing the Nasdaq 100 to an all-time high for a third consecutive trading session. The S&P 500 fell with JPMorgan Chase & Co. and Goldman Sachs Group Inc. reporting mixed results as second-quarter earnings season gets under way.

Prices paid by U.S. consumers surged in June by the most since 2008, topping all forecasts and showing higher costs associated with the economy’s reopening continue to fuel inflationary pressures. The consumer price index jumped 0.9% in June and 5.4% from the same month last year.

The Stoxx Europe 600 index edged higher. Banks declined after the European Central Bank said it would take steps to prevent excessive dividends when lifts a cap on payouts. Expectations for a solid earnings season have supported the stock rally, as investors ponder how central banks will unwind stimulus driving the recovery from the pandemic. Still, inflationary pressures remain a concern amid speculation around when the Fed will start cutting back bond purchases.

Stocks

The S&P 500 fell 0.3% as of 1:42 p.m. New York timeThe Nasdaq 100 was little changedThe Dow Jones Industrial Average fell 0.3%The MSCI World index fell 0.1%

Currencies

The Bloomberg Dollar Spot Index rose 0.4%The euro fell 0.6% to $1.1792The British pound fell 0.4% to $1.3828The Japanese yen fell 0.2% to 110.58 per dollar

Bonds

The yield on 10-year Treasuries advanced five basis points to 1.41%Germany’s 10-year yield was little changed at -0.29%Britain’s 10-year yield declined two basis points to 0.63%

Commodities

West Texas Intermediate crude rose 1.4% to $75.12 a barrelGold futures were little changed

Stocks Decline After Tepid Treasury Bond Auction: Markets Wrap, Bloomberg, Jul 14