The market is under pressure following the jobs report that came in better-than-expected, and consumer inflation expectations that erupted higher.

• One-year expectations: 3.3% from 2.8%

This is the highest level since May 2024 and well above the pre-pandemic range of 2.3% to 3.0%.

• Five-year expectations: 3.3% from 3.0%

Uncertainty over inflation's path continues to surge. I think this is more impactful concerning Fed policy than the jobs report.

Jay Powell always stresses Main Street inflation expectations; he has taken emergency actions in the past when this data series spiked.

The ten-year yield (TNX) broke a key resistance point this morning.

Nowhere to Hide – No Need to Panic

There was a lot of bottom-fishing this morning. The expectations game is helping to propel Walgreens (WBA) shares, and Target (TGT) is getting a bid after an upgrade. Airlines are up, as there has been a societal behavioral change in travel. Even those in the lowest income brackets strive to travel more domestically.

West Texas Intermediate (WTI) is trying to break out. This is helping the Energy (XLE) sector to stay as the only one in the green.

It's hard to see a rebound into the close.