U.S. PPI surged to 6.3% year over year in September and rose 1.3% month over month, while retail sales increased 0.8% month over month. Taken together, these figures make it clear that inflation “isn’t done yet.”
PPI is a leading indicator of prices paid by end consumers. This time, core PPI rose 0.7% month over month and 5.0% year over year, suggesting that even excluding food and energy, cost pressures are picking up across the board—naturally raising the odds that CPI will come under pressure in the months ahead.
Before the U.S. market opened, futures on the three major stock indexes diverged: Dow futures were still up 0.35%, the S&P 500 was slightly lower, and Nasdaq 100 futures had fallen to -1.25%. This looks more like a shift in market leadership: investors are flocking to traditional sectors that are more resilient to interest rates, while rate-sensitive tech and growth stocks are taking the first hit. Safe-haven trades in U.S. Treasuries are also picking up again.
For crypto markets, this isn’t an isolated data point, but another turn in the interplay between interest rates, risk appetite, and asset rotation. Over the next few months, whether inflation and consumer data continue to “hold firm” will determine whether capital flows back into tech and high-growth stocks or stays in value, defensive, and safe-haven assets for the long haul.
PPI is a leading indicator of prices paid by end consumers. This time, core PPI rose 0.7% month over month and 5.0% year over year, suggesting that even excluding food and energy, cost pressures are picking up across the board—naturally raising the odds that CPI will come under pressure in the months ahead.
Before the U.S. market opened, futures on the three major stock indexes diverged: Dow futures were still up 0.35%, the S&P 500 was slightly lower, and Nasdaq 100 futures had fallen to -1.25%. This looks more like a shift in market leadership: investors are flocking to traditional sectors that are more resilient to interest rates, while rate-sensitive tech and growth stocks are taking the first hit. Safe-haven trades in U.S. Treasuries are also picking up again.
For crypto markets, this isn’t an isolated data point, but another turn in the interplay between interest rates, risk appetite, and asset rotation. Over the next few months, whether inflation and consumer data continue to “hold firm” will determine whether capital flows back into tech and high-growth stocks or stays in value, defensive, and safe-haven assets for the long haul.