04:39 PM EDT, 04/12/2024 (MT Newswires) -- US equity indexes fell this week as government bond yields surged after hotter-than-expected inflation jolted investors pining for the Federal Reserve to kick off its easing cycle in June, while speculation escalated that Iran is close to attacking Israel.

* The Dow Jones Industrial Average closed at 37,983.24 on Friday, down from 38,904.04 a week earlier. The S&P 500 closed at 5,123.41, compared with 5,204.34, and the Nasdaq ended at 16,175.09 versus 16,248.52.

* Communication services and technology, relatively high-growth areas, topped sectors, calling into question the rotation trade. Financials posted the biggest decline.

* The mixed wholesale inflation in March failed to undo the damage unleashed by the stronger-than-forecast consumer prices, as a hot CPI poked holes in a narrative that the break in the disinflationary trend since the beginning of this year is a blip.

* Now, markets expect the central bank's Federal Open Market Committee to keep its rates unchanged on May 1, according to the CME FedWatch Tool Friday. The odds for a 25-basis-point cut in June stood at 26%, down from 51% a week ago. The highest probability for a cut this year is about 44% in July and September.

* Reflecting the delay in the beginning of monetary easing and a minority view that the Fed could remain on pause through this Presidential election year, the US 10- and two-year yields touched their highest since November. The latter came close to the psychologically important 5% mark.

* Gold climbed to a record this week, topping $2,400 an ounce for the first time, West Texas Intermediate crude oil rose to the highest since October as Israel-Iran tensions mounted.

* Speculation escalated this week that Iran is ready to retaliate against an Israeli attack on the embassy in Syria this month with missile or drone attacks, sparking worries of a wider Middle East conflict.