All major indices started the day off down, over 1%, on the news of higher-than-expected Core CPI that lowered rate cut prospects. However, indices have reversed intra-day off their lows, and one is now in the green, the Nasdaq Composite up marginally by 0.38%.

Today’s CPI news and subsequent market reaction also edged us further into the fear zone.

Bonds rallying is a massive tell after an upside inflation surprise. The ten-year initially sold off and now is coming back higher as stagflation remains a concern.

Technology (XLK) is the only sector in the green, currently up 0.79%. The worst performing sector is Financials (XLF), down 1.74%.

There is mixed average volume with decliners outpacing advancers in the NYSE and Nasdaq. The up volume on the Nasdaq dominates down volume as investors embraced growth stocks.

The Street is worried the Fed might not be done with the inflation story. Let’s see if buyers jump in the next few hours.