Here's What's Happening in Markets Today: April 10

Markets are in the red to kick off Wednesday trading after the consumer price index (CPI), an important gauge of inflation, rose more than expected. 

According to the Bureau of Labor Statistics (BLS), CPI jumped 0.4% for the month of March over the previous month compared to the 0.3% rise economists polled by Dow Jones had originally forecast

The hotter-than-expected inflation figures sank investor hopes that a rate cut would be coming as soon as the Fed's June policy meeting. Market probability of a June rate cut plummeted to roughly 20%, according to the CME Fed Watch Tool, dropping from a more than 50% chance just last week.

As markets took a leg lower, index ETFs were also in the red. SPY, the SPDR S&P 500 ETF Trust dropped more than 1% while DIA, the SPDR Dow Jones Industrial Average ETF Trust sank 1.25%.

Treasury yields jumped after the inflation report, particularly on the 10-year, a popular benchmark for mortgages and other loans. TLT, the iShares 20+ Year Treasury Bond ETF, was down over 1% after market open as bond prices dropped. Yields and prices have an inverse relationship.

Bond ETFs have been on a rollercoaster ride this year as investors question whether the Fed will cut rates — and when.

TLT 1-MONTH TOTAL RETURN 

Currently the price of TLT is sitting at just over $91, close to the lows for the year.

The inflation report also hit real estate and technology equity prices. Higher rate environments keep real estate under pressure as mortgages and loans become more expensive, keeping buyers on the sidelines. VNQ, the Vanguard Real Estate ETF tumbled nearly 3.5% after the inflation report.

And for growth stocks like technology, higher interest rates take a bite out of future profits. While tech stocks have soared despite the higher rate environment over the past year, today's inflation report sent tech ETFs skidding. QQQ, the tech-heavy Invesco QQQ Trust slid nearly 1%.