The June CPI data was worse than investors expected. The year-over-year increase of 9.1% means inflation continues to be at 40-year highs. That number cements expectations for a 75 basis point hike in interest rates later this month. And some analysts now speculate that the Federal Reserve will raise interest rates by 100 basis points when it meets later this month.

f investors didn?t have enough to worry about, they are also looking at the yield curve inversion. This confirms the economy is heading for, or already in, a recession. As you would expect, the market, went deep into the red on all this bad news.

However, as the trading day ended, the markets were well off session lows. The tech-heavy NASDAQ index in particular was showing some strength.

This is because many analysts believe the markets are already pricing in the hot CPI reading. And others believe that after months of head fakes, the economy may finally be seeing peak inflation. Investors will get more information when the June PPI data comes in tomorrow before the market opens.