Hits 6.3% and Core Doubles Its Forecast — But Yields Fall and Gold Rises, Pricing a Growth Shock, No

Hits 6.3% and Core Doubles Its Forecast — But Yields Fall and Gold Rises, Pricing a Growth Shock, Not a Rate Shock
September PPI came in at 6.3% YoY (vs 5.3% expected) with core PPI at 0.7% MoM — more than double the 0.3% forecast — confirming the energy shock has spread into general prices. But the market reaction inverted: the 30-year yield fell 14bps to 5.385%, gold rose 1% to $4,155, the dollar slipped, and copper fell — a stagflationary configuration pricing weaker growth rather than tighter policy. Bitcoin fell below $81,000. The KOSPI triggered a circuit breaker after falling 6%, Samsung -7%, SK Hynix -8% — the AI infrastructure unwind now driving a cross-asset move that includes credit spreads (CoreWeave bonds at ~15% yield), not just equities. Bitcoin ETFs shed $262M Wednesday; XRP funds were the only category with positive flows.