Oil Inflation Triggers Bond Sell-Off and Market Slide

The Dow Jones Industrial Average fell 1.6% to its lowest level since November, the S&P 500 dropped 1.4% to the same level, and the Nasdaq Composite lost 1.5%. This sell-off was driven by inflation measures that exceeded analyst expectations. Investors responded by selling bonds, which pushed the 10-year U.S. note yield to 4.26%, an increase of nearly 6 basis points. The VIX Composite spiked nearly 10%. The Federal Reserve concluded a policy meeting on March 18 with no change to interest rates. Chair Jerome Powell cited uncertainty from the war in Iran as a reason for the stability of rates. Brent crude oil closed at $105 a barrel, up nearly 6%, and the nationwide average for a gallon of gas reached $3.86. The VIX Composite spiked nearly 10%.