Wall Street is sleepless all night! The US PPI hits 6%, and the market begins to doubt that "rate cuts don't exist"

Yesterday, the US April PPI year-on-year was announced at 6%.
Today, global traders' dark circles are collectively deepening.
Because this data directly caused the market's expectations for rate cuts to start collapsing.
Originally, everyone had already assumed:
The Federal Reserve will definitely cut rates this year.
But now it turns out that inflation hasn't been fully subdued.
What does PPI represent?
It represents prices on the corporate side.
In other words, factories, logistics, energy, and raw materials are all becoming more expensive.
And what is the most stable thing in the capitalist world?
Companies will never proactively earn less money.
So future price pressures are likely to continue passing on to consumers.
What the market is most worried about now is:
Will inflation re-establish long-term expectations?
Because once everyone believes "prices will rise again in the future," then consumption, wages, and corporate pricing will all change.
By then, it will be even harder for the Fed to control it.
So now the global market has entered a strange state.
The economy is too weak, and that's not good;
The economy is too strong, and that's also not good.
Weakness fears recession;
Strength fears no rate cuts.
Investors are almost driven crazy by macro data.
Even more absurd is that now even the AI sector is beginning to be affected by interest rates.
Because the higher the valuation, the more sensitive it is to interest rates.
So the real key word in the market now is actually:
"Liquidity."
Money remains loose, assets continue to rally;
Money remains expensive, the market continues to fluctuate.
And this PPI data is now changing the entire market's perception of future liquidity.
In the coming months, it may become more and more intense.
Because everyone is waiting:
Will the Federal Reserve admit defeat or not?
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