Stocks Slip as Treasury Yields Rise on Sticky Inflation Data

US and European equities edged lower after a fresh inflation print reinforced expectations that central banks will cut rates more slowly than markets hoped. The two-year Treasury yield rose above 4.7% as traders pushed back the timing of the next Fed move. US futures turned negative before the open.

Strategists said the move reflected repricing rather than panic. Defensive sectors outperformed while rate-sensitive growth stocks underperformed, particularly software and smaller-cap tech names.