U.S. stock futures dipped while Treasury yields and the U.S. dollar climbed Wednesday following the release of the August inflation report. Futures on the S&P 500 were marginally lower after the data, paring gains from earlier in the morning, although trading was volatile across markets. The yield on the 10-year Treasury note initially jerked higher, rising as much as 10 basis points to more than 4.360% before paring its gains. Bond yields move inversely to prices.
While a gauge of broad consumer prices showed an increase of 0.6% for August, just as economists polled by The Wall Street Journal had expected, another measure of so-called core prices, which excludes volatile food and energy prices, rose by 0.3%, a bigger jump than the 0.2% that had been expected. Analysts were quick to interpret the data as slightly hotter than expected.