The SPY hardly moved from US PPI data and it was really good (lower inflation) and this is why:
What’s the data saying?
1.US PPI YoY (Year-over-Year):
Actual: 2.7%
Expected: 3.3%
Previous: 3.2%
✅ Came in lower than expected!
2.US PPI MoM (Month-over-Month):
Actual: -0.4%
Expected: 0.2%
Previous: 0.0%
✅ Negative – prices dropped this month!
3.US Core PPI YoY (excludes food & energy):
Actual: 3.3%
Expected: 3.6%
Previous: 3.4%
✅ Softer than expected!
4.US Core PPI MoM:
Actual: -0.1%
Expected: 0.3%
Previous: -0.1%
✅ Still negative – very soft inflation pressure
What does this mean? (Simple Terms)
PPI = inflation for businesses.
If it’s going up, costs go up, which may lead to price hikes for consumers.
This report shows inflation is cooling off – businesses are paying less or not seeing much cost increases.
How does this impact the stock market?
✅ Good for stocks.
Lower inflation ➡️ Less pressure on the Fed to raise interest rates
Might even mean rate cuts come sooner
Yields could fall, helping:
Tech stocks
Growth stocks
$SPDR S&P 500 ETF Trust(SPY)$ $Tesla Motors(TSLA)$ $NVIDIA(NVDA)$ $Apple(AAPL)$ $Meta Platforms, Inc.(META)$ $Amazon.com(AMZN)$ $Alphabet(GOOG)$ $Alphabet(GOOGL)$ in general
In one line:
“Inflation came in cooler than expected — the Fed can relax a bit, and the market loves that.”
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