Some would argue that a modest amount of inflation is good for stock prices. Since Mr. B is supposedly a fan of an "inflation target" some have concluded he will accept some inflation as opposed to Greenspan's no-tolerance approach.
The markets are jittery because that is their natural state. Bull markets climb a wall of worry.
Well, since the bond and currency markets are vastly larger than the stock market, I'll take my cue from them for now.