Below we can see the 5-year breakeven inflation rate. This is basically financial markets' forecast of the average inflation rate over the next 5 years, implied by the difference between normal 5-year U.S. government bonds and inflation-protected U.S. government securities of the same maturity.
Another very popular story is that the recent increase in nominal wages soenjow led to the stock market crash. I find that story quite unbelievable as well I must say. The chart below depicts the yearly change in nominal wages. For the first time since the financial crisis yearly wages are now changing at a rate of close to 3%, compared to just about 2.5% just a few month ago.
Economic fundamentals still look strong and most forecasts estimate that the first quarterly GDP figures in 2018 will come in relatively high, likely in excess of 3%. If contained, the recent market sell off will have a very muted effect on investment and consumption and can thus be compared to the 1987 stock market crash, which barely affected the economy at all. In that sense, what happened is that financial markets adjusted over the last few weeks to a new equilibrium with somewhat lower stock market valuations and higher bond yields. Note that the entire yield curve has shifted up by about 50 basis points from last November.
One last piece of advice, please follow Scott Sumner's motto and avoid reasoning from a price change! There was a lot of talk recently about how higher yields would lead to a decline in stock markets. Ironically, now people assert that higher yields might actually lead to a rise in stock market prices, which is historically actually more accurate. Higher nominal yields can be the result of an increase in inflation expectations and/or higher growth expectations, which both would be good news for stocks. Regardless, prices can change either as a result of a shift in demand or a shift in supply. You need to know which one it is if you want to avoid making nonsensical statements!