6% PPI like a nuclear bomb! Expectations of rate cuts instantly collapse, and the market begins a mass exodus

U.S. April PPI surges 6 year-on-year, and the entire financial market yesterday felt like it was pressed with a vibration button.
The worst affected are those funds that had already bet on "immediate rate cuts."
They were ready to celebrate the return of a loose era, but now find that the Federal Reserve might not dare to move at all.
Why?
Because inflation is starting to reappear.
The PPI indicator essentially measures corporate costs.
And what is a company's greatest strength?
Passing costs onto consumers.
So the market begins to worry: will the CPI continue to rise in the future?
If inflation spirals out of control again, the Fed will have no choice but to keep interest rates high.
And "high interest rates" for the capital market is like a noose.
Tech stocks fear it;
Real estate fears it;
Cryptocurrency markets fear it even more.
Because in the past decade or so, almost every super bull market had one common point:
Cheap money.
And now the problem is, money is not only not cheap, but may stay expensive for a long time.
So global funds are starting to re-hedge.
Gold strengthens, U.S. Treasury yields rebound, and market volatility clearly rises.
Many investors suddenly realize that now the hardest part is not choosing directions, but "not understanding" the market.
Because the market has entered a very strange state:
Bad data is bad news;
Good data is also bad news.
Weak economy, worried about recession;
Strong economy, worried about no rate cuts.
So everyone begins to realize: the Federal Reserve is actually the true "global CEO."
Even more amusing is that now even Powell himself might not dare to speak lightly.
After all, last year he said "inflation is under control," and now the PPI has shot up to 6%.
If the market again forms a "long-term high inflation expectation," the consequences could be very troublesome.
Because once expectations are set, they are very hard to reverse.
And what the capital market fears most is never the risks that have already happened, but the "unpredictable future."
So don’t just see this as a data point now.
It might be changing the entire market rhythm for 2026.
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