Inflation is not dead! U.S. PPI skyrockets overnight, global capital begins to panic

U.S. April PPI year-over-year 6%, after this number came out, the market's biggest feeling was only four words: Things are not looking good.
Because everyone originally believed that the Federal Reserve was close to winning.
But now it turns out, inflation is like a game boss, and there’s actually a second phase.
Even more outrageous is that this rise isn’t just a single commodity surging, but multiple sectors rising together. Energy, transportation, industrial raw materials are almost all heading upward.
What does this mean?
It means that the “price pressures” in the U.S. economy are re-expanding.
What the capital markets fear most is not bad news, but “uncertainty.”
And the most uncertain part right now is: Can the Federal Reserve still cut interest rates?
The market had already priced in a “rate cut bull market” in advance.
Tech stocks soared, crypto markets rebounded, and funds re-chased risk assets.
But one PPI data point made everyone recalculate immediately.
The most popular phrase on Wall Street now is probably:
“Stop predicting the Fed, you can’t guess it at all.”
And ordinary investors are also starting to fall into a state of confusion.
Some think high inflation benefits gold and Bitcoin;
Some believe high interest rates will continue to suppress risk assets;
And others simply give up: “Whatever will be, will be.”
But history has already told the market many times:
When inflation re-surges, the real big waves often are just beginning.
Because this means global funding costs could stay high for a long time.
Corporate financing becomes expensive, residents’ loans become costly, real estate faces pressure, consumption cools down.
The entire economy is like a car pressing both the accelerator and the brake at the same time.
The most uncomfortable is Powell.
He previously raised interest rates madly, finally making the market think inflation was ending.
Now the data is rebounding again, which is like telling the whole world:
“The fight might not be over yet.”
The most critical thing next is the CPI and employment data in the coming months.
If inflation continues to rise, the Fed is very likely to keep fighting high interest rates.
And once the market confirms a “long-term high interest rate era,” global asset valuation systems could be reshuffled.
Don’t just look at the PPI now.
Many times, a big storm starts with just one number. #美国4月PPI同比暴涨6%