Major indices are moving lower today following the jobs report, and consumer inflation expectations, that erupted higher.

• 1-year inflation expectations rose to 4.3% from 3.3%.

This is the highest level since November 2023 and well above the pre-pandemic range of 2.3% to 3.0%.

• 5-year inflation expectations rose to 3.3% from 3.2%.

Uncertainty over inflation’s course continues to surge. We think this is more impactful concerning Fed policy than the jobs report.

The Ten-year yield (TNX) rose 5.7 basis points.

Only Energy (XLE) and Communication Services (XLC) are in the green. The laggard of the day is Consumer Discretionary (XLY), followed by Materials (XLB).

Amazon’s (AMZN) poor earnings reaction is contributing to the lagging of the Consumer Discretionary sector.