Okay, so let’s dive into this whirlwind of numbers and finance talk. Dow Jones sneaked back up—yeah, like creeping into the 43,000 zone after we got that PPI inflation data. Honestly, it’s like, who saw that coming? Market nerds are chatting up Fed rate cuts again, thinking it might just happen later this year. Funny how low inflation data doesn’t shut that conversation down, right? Tariffs are still lurking in the background. Always something, huh?
So, the Dow Jones danced a little on Thursday. Why? Well, PPI inflation data for May came out better than we thought. Not sure if that’s thanks to or despite the Trump admin trying to slap extra international trade taxes on things. But hey, there’s this lack of crazy price jumps, and now everyone’s back on the Fed rate cut train for September. Wild times.
Quick rewind: PPI inflation bounced up in May. Yeah, previous data’s had a tiny nudge up too, but overall, it was below what people guessed. Annualized core PPI? Dropped to 3.0% YoY. Meanwhile, headline PPI inflation bumped up to 2.6% YoY. Not world-ending, but something to chew on.
And then this week’s weak inflation numbers—both consumers and producers—kind of sparked the markets into thinking the Fed might start their rate-cutting spree. Almost 80% odds of at least a 25 basis-point slice when September rolls around. But, until we get there, rates are likely just gonna sit tight.
We’re also waiting on the University of Michigan’s Consumer Sentiment Index for June. Drops on Friday to round off the week. Everyone’s guessing it’ll bounce back. And the 1-year and 5-year Consumer Inflation Expectations? Let’s just say they’re sitting a bit high at 6.6% and 4.2%. Yikes.
So, what’s up with Dow Jones? Thursday’s jump has the index sort of flirting with the 43,000 mark. But like, not much pep in its step, you know? It’s kind of stuck in traffic, struggling to part ways with the 200-day EMA near 41,780. Guess we’ll see if it manages to break free.
Oh, and a bit about the Producer Price Index (YoY) because, why not? It’s a big deal, released by the Bureau of Labor Statistics. Measures how prices change for producers, and trust me, everyone’s watching it like a hawk as an inflation sign. High readings usually make the USD look good, low readings—not so much.
And there you go. That’s the scoop. Sort of.
