Stagflation woes hit U.S. stocks; 2-yr Treasury yield jumps – Reuters

Stagflation woes hit U.S. stocks; 2-yr Treasury yield jumps – Reuters

NEW YORK, Oct 12 (Reuters) - U.S. shares slipped on Tuesday in choppy trade, as investors waited for businesses to report how rising prices have hit their latest earnings, while bond yields spiked and the dollar shone on bets that monetary policy will soon be tightened.

Indeed, two U.S. Federal Reserve policymakers said on Tuesday that the central bank has kept pace with a planned move to reduce its bond buying program, cementing expectations that the Fed will start withdrawing its crisis-era stimulus as soon as next month. read more

Soaring oil prices largely held on to recent gains, while U.S. stock indices vacillated repeatedly between modest gains and losses before a flurry of third-quarter bank earnings reports from Wall Street on Wednesday and Thursday.