S&P 500 Heads for Worst Month Since 2022 as Bond Yields Jump On Inflation Fears

‘We got a rise in commodity prices, which is problematic for the Fed,’ says Bob Elliott, CIO of Unlimited Funds

by Christine Idzelis
Market Watch

The U.S. stock market’s bull run has hit a rough patch, as bond yields spiked this month on fears that a robust economy is helping to keep inflationary pressures alive.

The S&P 500 is on pace for its biggest monthly drop since December 2022, with April’s pullback erasing about half the gains the U.S. stock market had booked this year by the end of March. The index has slumped 5.5% this month through Friday, lowering its climb in 2024 to 4.1%.

Still, the S&P 500 is just 5.5% from its record closing peak on March 28. Equities investors got it right this year that economic growth remained strong in the U.S., but the problem now is that the view is already priced into stocks — and that yields in bond market were left to catch up, according to Bob Elliott, chief executive officer and chief investment officer of Unlimited Funds.

Continue Reading at MarketWatch.com…