Commodity Price Rise Gets Market's Attention
NEW YORK, May 23ÛÓThe financial markets today betrayed their still-lively fear of future inflation by pushing down stocks and bonds at the first new sign of higher commodity prices.</br></br>Tt marked a distinct change in mood after market rallies last week in response to strong central bank action against the inflation that an overheating economy could bring.</br></br>The Commodity Research BureauÛªs (CRB) index of 21 key prices recorded its sharpest one-day gain since last Ju- ly, a hint that inflation, although now very quiet, may surge at the end of the year. TradersÛª bets on the future prices of many goods, ranging from silver to soybeans to coffee, fueled the rise.</br></br>As a consequence, the Dow Jones industrial average dropped 23.94 to 3742.41, and bond prices declined, sending yields on long-term Treasuries up to 7.43 from 7.30 Friday.</br></br>ÛªÛªYou still have an economy that is growing fairly rapidly, and so you do come out with the view that we are likely to see some acceleration of inflation in the second half of the year," See MARKETS, D2, Col. 1