The evening's US PPI data has caused market panic.
PPI reflects the changes in production costs for American companies, which means that if the costs of raw materials, energy, labor, etc., rise, the PPI usually increases. These rising costs may eventually be passed on to retail prices, thereby affecting people's lives.
Currently, the data shows a year-on-year increase of 3.3%, which is higher than expected. This may cause the Federal Reserve to be more cautious about interest rate cuts, and it may even delay the first rate cut.
This is because cutting rates would accelerate rising costs, while raising rates or maintaining rates would not. Therefore, the market's initial expectation for a rate cut in September has suddenly decreased.
This has led to a decline in all risk assets, which also provides an opportunity for those optimistic about future market trends, as it gives a chance for price recovery.
