Take a snapshot of markets right now, and it’s a picture of health. Stocks are at records, corporate bonds show no signs of worry and commodities remain buoyant on global economic optimism.
Signs that inflation has yet to release its grip on markets have simmered for weeks. Now they’re boiling over after Wednesday’s hotter-than-forecast consumer price index sent stocks and bonds reeling.
Professional speculators with billions in bearish trades on the line endured a rough ride after Tuesday’s report on US consumer prices brought the latest sign that the Federal Reserve is making progress in its battle against inflation.
