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[January CPI Exceeds Expectations, Triggering Stock Sell-Off and Bond Yield Spike] The Bureau of Labor Statistics reported a higher-than-expected January CPI of 0.5% monthly and 3% year-over-year, exceeding December's 2.9%. This news triggered market concerns about the Federal Reserve maintaining high interest rates, leading to a sell-off in US stocks, with the S&P 500 and Nasdaq Composite down almost 1%, and the Dow falling over 400 points. Consequently, bond yields spiked, with the 10-year Treasury yield jumping to 4.643%, and market expectations for near-term Fed rate cuts diminished, with investors now seeing a 63% chance of rates remaining unchanged in June.
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