Markets turn uneasy as fresh inflation data tests Wall Street’s confidence

Group 1 - The United States Producer Price Index (PPI) rose 0.3% in September, aligning with economist expectations, providing relief to crypto markets and contributing to a modest upward movement across major assets [1][7] - The PPI serves as an indicator of inflation at the factory level, with rising producer costs potentially leading to increased consumer prices (CPI) [2] - The latest PPI data is characterized as a "no surprises" inflation report, indicating stability in inflation expectations [3] Group 2 - A predictable PPI reading suggests that the Federal Reserve has no new impetus to alter interest rate policies, which is favorable for market stability [4] - Deutsche Bank anticipates a 25-basis-point cut in December, followed by a prolonged pause until Q3 2026, citing easing inflation but a cautious Fed [5] - Goldman Sachs supports the December cut outlook, linking it to a cooling labor market and softening employment data [6] Group 3 - The increase in PPI was driven by energy and food costs, while the core PPI (excluding food and energy) was softer than forecasts [7] - Market predictions show a strong expectation (around 85%) for a 25-basis-point cut in December, with only a small percentage anticipating rates to remain steady [8] - Following the PPI data, Bitcoin and XRP experienced slight increases, although trading remained within a narrow band due to muted macro-sensitive flows [9]