Wall St Week Ahead-Dashed peak inflation hopes spell more pain for stocks and bonds

Friday gave a hint of what investors may see in coming weeks. The benchmark S&P 500 index .SPX fell nearly 3% while yields on the benchmark 10-year Treasury hit their highest level since early May after stronger-than-expected inflation data ramped up forecasts for more aggressive Fed rate hikes later this year. Bond yields move inversely to prices.

NEW YORK: Blistering inflation is threatening to reignite twin declines in U.S. stocks and bonds, leaving investors with few places to hide from a Federal Reserve that appears headed for its most aggressive policy tightening in decades.

Friday gave a hint of what investors may see in coming weeks. The benchmark S&P 500 index .SPX fell nearly 3% while yields on the benchmark 10-year Treasury hit their highest level since early May after stronger-than-expected inflation data ramped up forecasts for more aggressive Fed rate hikes later this year. Bond yields move inversely to prices.