RT St. Louis Fed (@stlouisfed)The consumer price index tracks the prices of rent, insurance, imports and administrative fees, among other things. The producer price index tracks exports, government purchases, business investments and intermediate goods. Check the FRED Blog for more https://t.co/HfmiyMSLIS https://t.co/RNEXA4GwkE ...

Stocks moved mostly higher early in the session on Wednesday but gave back ground over the course of the trading day. The S&P 500 and the Nasdaq pulled back well off their best levels but still managed to end the day at new record closing highs.The S&P 500 rose 19.43 points or 0.3 percent to 6,532.04 and the tech-heavy Nasdaq inched up 6.57 points or less than a tenth of a percent to 21,886.06.The narrower Dow, on the other hand, slid 220.42 points or 0.5 percent to 45,490.92, as Apple (AAPL) slumped follo ...

Bitcoin Price Gets a Boost from Producer Price Index Print► https://t.co/I30ZdnJYlm https://t.co/I30ZdnJYlm ...

Economic Indicators - The Bureau of Labor Statistics reported a 0.1% drop in the producer price index (PPI) for August, indicating reduced pressure on producers to raise prices, which increases the likelihood of a Federal Reserve rate cut next week [1] - The core PPI, excluding food, energy, and trade, rose by 0.3% month-over-month, the fastest pace since March, bringing the year-over-year core rate to 2.8%, suggesting persistent underlying price pressures despite subdued goods inflation [4] Cryptocurrency Market Reaction - Bitcoin (BTC) gained approximately 0.5% in the hour following the release of the new U.S. economic data, trading over $114,000, which is 2.3% higher than the previous week but still 5.7% below its price 30 days ago [2] - Ethereum also saw a slight increase of 0.2%, trading at $4,382.10 after the PPI announcement [2] Market Sentiment and Predictions - Users on Myriad, a prediction market, show increased confidence that Bitcoin can remain above $105,000 throughout September, with 72% of users believing in this price stability [3] - The Crypto Fear & Greed Index has shifted from a greed reading of 70 to a neutral rating of 49, indicating a change in market sentiment [6] Federal Reserve Expectations - With the Federal Open Markets Committee (FOMC) meeting approaching, there is a strong expectation (88%) among investors for a 25 basis point rate cut, while 12% anticipate a 50 basis point cut [7] - Upcoming economic indicators such as non-farm payrolls and unemployment data are expected to significantly influence market volatility and crypto prices [7]

By Lucia Mutikani WASHINGTON (Reuters) - U.S. producer prices unexpectedly fell in August amid a compression in trade services margins and mild increase in the cost of goods, suggesting that domestic firms were probably absorbing some of the tariffs on imports. The lack of strong producer price pressures, despite import duties, could also be signaling softening domestic demand against the backdrop of a struggling labor market. The Federal Reserve is expected to cut interest rates at its policy meeting ne ...

Inflation Analysis - The producer price index (PPI) increased significantly from approximately 23% to 33% year-over-year, a full percentage point increase, exceeding market expectations of 25% [3][4] - The consumer price index (CPI) saw a smaller increase, rising from 267% to about 273% [3] - PPI measures inflation upstream at the production or wholesale stage, while CPI measures it downstream at the consumer level [6][7] - While upstream prices are increasing, it remains to be seen if these costs will be passed on to consumers and reflected in CPI [8][9] - Food and beverage inflation remained relatively stable, while housing inflation decreased, masking increases in other categories such as medical care and recreation [17][18][19] - Housing inflation accounts for approximately two-thirds of overall CPI [20] Market Impact and Monetary Policy - The surge in PPI caused market sell-offs, particularly around 8:30 AM when the data was released [17][33] - Despite the PPI increase, the market still anticipates a rate cut in September, with approximately a 90% probability, although this was previously higher at 97% or 98% [23] - The report suggests that even with a rate cut, the long end of the yield curve may increase due to inflation concerns [24] - Cutting rates with rising inflation may not improve the housing market and could potentially worsen it [27] Consumer Behavior - Sales are declining at some stores like Chipotle, Cava, and Sweetgreen, indicating that consumers may be unwilling to pay higher prices [10][11][13][14] - Lower-end pizza chains are experiencing increased demand, suggesting consumers are seeking more affordable options [12][15]

Inflation Indicators - Producer Price Index (PPI) headline number increased by 09% [1] - Core PPI, excluding food and energy, also rose by 09%, matching the increase in June 2022 [1] - PPI excluding food, energy, and trade exceeded expectations, rising by 06% against an expected 02% increase, marking the highest level since March 2022 [2] - Final demand year-over-year increased by 33%, surpassing the expected 25% and reaching the highest level since February [3] - PPI excluding food, energy, and trade year-over-year increased by 28%, exceeding the expected 25% and reaching the highest level since March [3] - PPI excluding just food and energy year-over-year increased by 37%, the largest increase since March when it was 39% [3] - Every PPI metric is warmer than expected and significantly higher sequentially [4] Labor Market - Initial jobless claims decreased by 3000 to 224000 [4] - Continuing claims remained above 19 million for the 12th consecutive week, totaling 1953000, a level last seen in November 2021 [4] - The next increase in continuing claims will push the total over 2 million, a level last seen in November 2021 at 2041000 [5] Bond Market - Interest rates on the 10-year Treasury note moved up to around 425% [5] - The 2-year Treasury note yield increased to 370%, with yields higher across all maturities except for 30-year bonds, which remained virtually unchanged [5]

Hot PPI, coins dipping a bit in reactionDB News TradFi (@DBNewswire):*US JULY PRODUCER PRICES RISE 3.3% Y/Y; EST. +2.5%*US JULY PRODUCER PRICES RISE 0.9% M/M; EST. +0.2%*US JULY CORE PPI RISES 0.9% M/M; EST. +0.2%*US JULY CORE PPI RISES 3.7% Y/Y; EST. +2.9% ...