What Happened

  • Producer prices were mixed, with goods softer but services still firm.
  • Equities consolidated gains while yields steadied.
  • Fed speakers emphasized patience, tempering aggressive cut bets.
  • Oil slipped on a reported inventory build.

What It Means

  • CPI relief is real, but the Fed is signaling a measured pace.
  • Stable yields reduce the risk of an abrupt reversal in equities.
  • Energy softness keeps near-term inflation pressure contained.

What I Think

  • I am comfortable holding risk but keeping hedges on.
  • If the Fed keeps pushing back, the rally will need earnings support.
  • Energy remains a useful hedge against any inflation surprise.

Market Terms

  • PPI - Producer price index, measuring inflation at the wholesale level.
  • Fed pushback - Guidance aimed at cooling rate-cut expectations.
  • Inventory build - Rising stockpiles that can pressure prices.