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Broad Selloff Signals Inflation Fears Are Warming

For months, there has been relatively little investor angst about rising prices. On Wednesday, there were signs that might be changing.

The Dow Jones Industrial Average fell 240 points, or 0.7% while the technology-fueled Nasdaq Composite Index dropped 264 points, or 1.7%. In the government bond market, longer-term Treasury securities, which generally are most sensitive to inflation expectations, fell in price, as did short-term Treasurys, which tend to anticipate interest-rate moves by the Federal Reserve. The 10-year Treasury yield posted its largest rise in a year. When bond prices fall, yields rise.

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