Powell is at his wit's end! U.S. PPI suddenly jumps 6%, and the market begins to doubt everything

U.S. April PPI year-over-year 6%, a single data point instantly shifts the global market from a “bullish optimism” to a “doubtful mode.”
Who is the most devastated?
Not retail investors, but Wall Street institutions that have already gone all-in on “rate cut trades.”
A few months ago, the market was still wildly fantasizing:
Federal Reserve cuts rates → dollar weakens → tech stocks surge → Bitcoin takes off.
But now, PPI suddenly slaps back.
It turns out inflation is still alive.
And it’s quite lively.
Why is PPI so critical?
Because it reflects the cost at the production level.
Factory costs rise, and corporate profits shrink.
And what is the most sacred thing in capitalist society?
It’s not consumer happiness, but shareholder returns.
So ultimately, companies will raise prices.
Then everyone starts to worry: will the CPI worsen again in the future?
If CPI continues to rebound, the Federal Reserve won’t dare to cut rates.
At this point, the market enters a very comical situation:
The economy is too weak, that’s no good;
The economy is too strong, that’s also no good.
Weak data, worries about recession;
Strong data, worries about no rate cuts.
So now, every time economic data is released, Wall Street feels like opening a blind box.
And the crypto world is even more dramatic.
Bulls say: the dollar will depreciate long-term, Bitcoin is the ultimate safe haven asset.
Bears say: high interest rates will drain liquidity, and the crypto market still has to fall.
Neither side thinks they can lose.
But the real core of the market is actually “liquidity expectations.”
Over the past decade or so, the biggest driver of global asset growth has not been performance, but cheap money.
And now, the problem is—money might not be so cheap anymore.
If high interest rates persist longer, many overvalued assets will need to be re-priced.
So you’ll find that the market is no longer simply a “bull” or “bear” market.
It’s a new phase of high volatility, high emotion, and high division.
Some people get rich overnight.
Some get wiped out overnight.
And others go from bullish yesterday, to bearish today, and bullish again tomorrow.
In this market, even retail investors are starting to experience mental breakdowns. #Gate广场五月交易分享