Stocks fell as investor expectations for higher interest rates picked up after reports of upbeat U.S. economic data and a jump in inflation. Major indexes' losses deepened mid-afternoon as investors sold more consumer staples and utilities shares. Those sectors include steady dividend paying companies, which had made them investor favorites in recent months amid prolonged low interest rates and scarce returns elsewhere. Interest rate futures–a popular tool for hedge funds and money managers to place bets on the Fed's policy–showed Tuesday that the odds of a rate increase at the Fed's June meeting were 19% Tuesday, up from 4% a day ago, according to CME Group. The odds for a rate increase at the December meeting were 70% recently, up from 58% a day earlier. The Fed's minutes from its April policy meeting are scheduled to be released on Wednesday and investors will look for clues over when and if the Fed will continue to raise interest rates. Stocks have struggled for direction recently, with the S&P 500 down 0.1% this month. The Dow has changed direction from the prior session for the past six trading days on a closing basis.
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