The markets stumbled out of the gate as the rise in yield started to put some pressure on stocks, followed by profit-taking action. The Russell 2000 gave back the most, losing 1.5%.

The Ten-Year Treasury Yield (TNX) rose by 12.5 basis points (bps) and remains above its 200 MA.

Only two sectors, Communication Services (XLC) and Consumer Staples (XLP), are slightly in the green. The biggest loser is Materials (XLB), after Mosaic (MOS) reported dismal earnings. Utilities (XLU) are the 2^nd largest laggard.

In the economic front, inflation expectations broadly lower in the NY Fed survey. The 1-year inflation expectations hit their lowest level since October 2020 at 2.87%.

All eyes on CPI for October tomorrow as the Street searches for signs that inflation is cooling.