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Friday, April 11th
“I can calculate the motion of heavenly bodies, but not the madness of people.”
Isaac Newton
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Markets Today
🌏 Asia-Pacific: Mixed
🇪🇺 Europe: Down
🇺🇸 United States: Down
🛢️ Oil: Down
⚡Crypto: Up
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Major Market Events
- Core inflation rate plummets to 4-year low in March
- Fed’s Kashkari: Rising yields may signal investors leaving US
- Gold again hitting record highs during market madness
🤔 My Thoughts
Today’s PPI number came in surprisingly low.
The Producer Price Index (PPI) measures the average change in prices that domestic producers receive for their goods and services over time.
Think of it as a gauge of inflation at the wholesale level, before products hit the consumer market. It covers sectors like manufacturing, agriculture, and services, tracking costs for things like raw materials, intermediate goods, and finished products.
Unlike the Consumer Price Index (CPI), which looks at what people pay at the store, PPI reflects price pressures earlier in the supply chain.
Today’s PPI results matter because they can signal where inflation is headed. A lower-than-expected PPI, like the -0.4% reported this morning against a forecast of +0.2%, suggests inflation might be cooling faster than anticipated.
This could ease pressure on the Federal Reserve to keep interest rates high, potentially boosting markets as borrowing costs stabilize or drop.
For everyday folks, it might hint at slower price increases down the line, though businesses sometimes absorb or pass on costs unevenly, so the impact isn’t always direct.
Now as some analysts have pointed out, it’s not just a positive thing… it could also be a signal that the overall economy is stalling out, and both consumers and producers are tightening their belts, and we’re in for some rough times ahead, even if we get rate cuts.
So while we’d rather see this low PPI number than a high one… the market mess isn’t likely to be cleaned up anytime soon.
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Testimonial of the day:
Linda A. about the Lazy Trader’s Club:
“I am brand new. 1st trade closed today with a profit of 20%”