Finance

U.S. government bond yields shot higher immediately following the hotter-than-expected inflation metrics, with the 10-year Treasury yield climbing past 5.27%. Shorter-dated maturities led the losses in the fixed-income market as traders aggressively priced in higher-for-longer monetary policy. The relentless advance in yields continues to exert downward pressure on equities, particularly highly valued technology and growth stocks.

The broader crypto market experienced a downturn, with Bitcoin and Ethereum falling after the U.S. inflation report threatened to derail the typical "Uptober" seasonal rally. Bitcoin slid beneath the critical $84,000 support level as risk aversion swept across financial markets, compounded by recent outflows from spot digital asset ETFs. The macroeconomic strain from high bond yields appears to be offsetting positive corporate crypto purchases reported earlier in the month.

The third-quarter corporate earnings season began with mixed reports from the financial sector, where institutional performance was largely overshadowed by macro caution. Bank of America reported an earnings per share miss of 91 cents against expected projections due to a substantial regulatory fine from the Treasury. Meanwhile, firms like Citigroup and Wells Fargo posted decent quarterly figures but failed to ignite a rally due to cautious future guidance and lingering borrowing cost concerns.