Stock futures fell and bond yields rose after inflation hit a new four-decade high, adding to investor expectations that the Federal Reserve will continue to tighten monetary policy to control growth in prices.
The S&P 500 futures fell 1.6%, after trading on the rise before the release of data showing that consumer price inflation accelerated to 9.1% in June. This was an increase of 8.6% in May and led to a faster pace of inflation than economists had expected.