us inflation didn’t run as hot as expected in august but remains elevated and a source of worry for investors and policy makers but by itself a jump in inflation is hardly ever enough to derail a bull market in stocks according to a top wall street technician “we can’t find much evidence that spiking inflation figures are bearish for equities” said jeff degraaf founder of renaissance macro research in a wednesday note in a wednesday note that featured the chart above degraaf noted that inflation jumps “do tend to push against returns when they force the fed’s hand to kill the growth cycle but we know that’s not happening here yet” the august consumer price index rose a lessthanexpected 03 in august and that saw the yearoveryear rate fall to a stillelevated 53 from 54 the first such decline since october the core rate which excludes volatile food and energy costs saw a 4 yearoveryear rise versus 43 in july the drop was seen reinforcing the message from federal reserve chairman jerome powell and other policy makers that rising inflation pressures were likely to prove “transitory” though economists said signs of underlying inflation pressures still raised alarms read the great us inflation scare of 2021 isn’t over just yet meanwhile longdated treasury yields declined following the cpi reading while the data wasn’t expected to alter the fed’s desire to begin scaling back its monthly bond purchases before yearend analysts said the decline in yields reflected fading worries among bond investors that the federal reserve might be forced to raise interest rates by more than expected also see bond investors may be overreacting to us inflation report for august analysts say the yield on the 10year treasury note tmubmusd10y fell 47 basis points to 1276 on tuesday its biggest oneday decline since aug 13 the yield continued to edge lower wednesday trading at 1275 “the response from 10year yields should provide some real‐time comfort to those concerned that inflation measures are about to go off the rails” degraaf wrote “the fact remains that inflation expectations are a far better sentiment guide than they are a predictor of realized inflation” stocks have stumbled in september with the sp 500 spx retreating 18 in the month to date and taking it 21 below its record finish earlier in the month the dow jones industrial average djia is off 26 so far in september read next stockmarket traders brace for ‘quadruple witching’ as equities suffer another midmonth stumble