US stocks continue to drift as traders react to data and fear the Fed

US yields are trading near highs for the day and that is helping to continue to depress US stocks. The employment cost index for Q1 came in stronger than expected earlier today. And although consumer confidence was sharply lower than expectations of 97.0 versus 104 estimate, it did not stop traders from feeling nervous about inflation, especially ahead of the FOMC rate decision tomorrow.

A snapshot of the debt market shows:

2-year yield 5.039%, +6.6 basis points. The 2-year yield is up 41 basis points this month5-year yield 4.717%, +7.8 basis points. The 5-year yield is up 49.8 basis points this month10 year yield 4.684%, +7.2 basis points. The 10 year yield is up 48 basis points this month30-year yield 4.787%, +5.0 basis points. The 30-year yield is up 43.7 basis points this month

In the US stock market, the

Dow Industrial Average average is now down- 426 points or -1.11% at 37959.18S&P index is down -50.46 points or -0.99% at 5065.65NASDAQ index is down -186.23 or -1.16% at 15795.25

The small-cap Russell 2000 is down -31.17 points or -1.55% at 1984.83.

After the close Amazon will announce their earnings. Also releasing earnings after the close today include AMD, Super Micro Computers and Starbucks. Apple will announce their earnings after the close on Thursday.

The move higher in yields has gold trading on the defensive today. Gold is currently trading down $-44 or -1.88% at $2291. Low price reached $2289.79.

Crude oil futures settled at $81.93 on the last day of the trading month. That is down $0.70 or -0.85%. For the trading month, prices fell -1.72% after closing last month at $83.17. The high price for the month reached $87.67. The low price was at $80.70

This article was written by Greg Michalowski at