Consumer prices in May were slightly hotter than expected, which helped to send bond yields higher and stocks lower.The data showed there is still not a lot of wage pressure, but it looks like the market is trying to get ahead of that.
Is it a threat to stock multiples? Not yet.
Trader will be looking carefully at the Federal Reserve when it issues its policy statement on Wednesday. As usual, look for any subtle changes to the narrative—such as references to shifts in wage expectations, for example. Also, look for even more discussion about "complacency", that being a byword for excessive risk taking.