Rates Climb, Tech Stocks & Mixed Earnings Force Indexes Lower

In the Bond Market, the morning began with a risk-off tone as sticky inflation pushed the UK to raise interest rates for the second time in two months and the European Central Bank finally acknowledged that they may start tightening later this year. In response to the news, rates in the US climbed as investors sold off mid- and longer-dated bonds and the belly of the yield curve steepened.
US Stock Markets sold off again today, triggered by mixed earnings from widely-held tech stocks and lower earnings beats from index stocks that are prompting investors to recalculate where stock prices should be as inflation dampens corporate profit margins and higher rates add pressure to cash-strapped companies.
We should see market volatility drop when Covid case counts bottom and people are comfortable enough to return to their normal activities, but with lingering inflation and a rising rates environment, market volatility will likely stick around a while longer.

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