U.S. CPI worsens further

U.S. CPI worsens further.
Prices for services, which reflect labor costs rather than goods, are rising sharply.
This is data that supports monetary tightening.

Stock markets fell on the CPI, then rebounded.
Not because investors liked the CPI. Likely a buying back by those who were short.
Unless something highly unexpected happens, after such a drop there is unlikely to be a much bigger decline. The S&P 500 has fallen 16.6% from its high of 4,796.56 on January 3, 2022 to 4,001.05 on May 10.

The situation has not improved and has worsened further, so the downtrend continues.

However, commodity prices are leveling off. Accordingly, consumer prices overall and core consumer prices remain high but have eased slightly.
In that sense, the focus is on the pace of wage growth.