July 13 (UPI) -- U.S. markets fell Tuesday, reversing gains from the start of the week, following a report detailing surging consumer prices.
The Dow Jones Industrial Average fell 107.39 points, or 0.31%, while the S&P 500 dipped 0.4% and the Nasdaq Composite slid 0.46%.
Tuesday's losses came as the Department of Labor issued a report Tuesday stating that consumer prices in the United States increased 5.4% between June 2020 and June 2021, the steepest 12-month increase in more than a decade.
San Francisco Federal Reserve President Mary Daly told CNBC she believes the recent inflation will be temporary and that strong economic recovery could potentially allow the central bank to taper asset purchases by the end of 2021 or early 2022.
The 10-year U.S. treasury yield jumped about 0.5% above the 1.4% level in response to the inflation numbers.
"A white-hot June CPI print has the markets jittery," Cliff Hodge, chief investment officer at Cornerstone Wealth, said. "Moving forward we expect these inflation numbers to begin to cool. June 2020 was the absolute low for Core CPI during the pandemic shutdown, so the comparisons get tougher from here."
Tuesday also marked the start of second-quarter earnings reports, with JPMorgan Chase falling 1.72% after posting earnings of $11.9 billion, or $3.78 per share, while Goldman Sachs stock dipped 1.19% reporting earnings of $15.02 per share.
Both banks posted gains to help lift markets on Monday ahead of the earnings reports.
Pepsi stock gained 2.31% after surpassing estimates for its second-quarter earnings driven by increased restaurant demand amid recovery from the COVID-19 pandemic.
Earnings are expected to be strong overall with aggregate S&P 500 earnings expected to grow 64% for the second quarter, the fastest increase since the fourth quarter of 2009, according to FactSet data.