6%! The US PPI pauses rate cuts again, and the Federal Reserve is about to stay up all night

The US April PPI surged 6% year-over-year, and the market instantly shifted from "celebration mode" to "risk aversion mode."
Originally, investors were waiting for rate cuts, but the inflation data delivered a direct counterpunch.
Wall Street was still imagining a "liquidity bull market" yesterday, but today it has turned into "survival mode."
Why can one PPI make the market explode?
Because PPI represents corporate production costs.
Rising raw materials, electricity prices, logistics, and wages mean companies are likely to continue raising prices.
Consumers' wallets are in danger.
And most importantly, what does the Federal Reserve fear the most?
The fear of inflation reigniting.
Because once the market forms the expectation that "prices will continue to rise," everyone will start spending early, asking for higher wages early, raising prices early, leading to a vicious cycle.
Simply put: the most frightening thing about inflation is not the rise itself, but "everyone believing it will keep rising."
So now Powell faces a moral dilemma:
Will continuing high interest rates crush the economy?
Will cutting rates early cause inflation to spiral out of control?
This situation is very much like someone riding a tiger and unable to dismount.
And the capital markets are also beginning to reprice.
US Treasury yields are rising, tech stocks are under more pressure, and gold is starting to regain investor attention. The funniest thing is Bitcoin, which can now be explained as both a "risk asset" and a "safe haven asset."
When it rises, it’s called digital gold; when it falls, it’s called a high-risk speculative asset.
There’s always a reason.
But the real big issue lies behind this.
If US inflation remains high for a long time, global funding costs will stay elevated. Emerging markets will face greater pressure, and global asset volatility will significantly increase.
Many people think the keyword for 2026 is AI.
But now, it might be "inflation."
Because no matter how powerful AI is, it can’t beat the Federal Reserve’s simple statement: "No rate cuts."
In the coming months, the market may become more and more sensitive.
One data point can cause a surge; another can cause a plunge.
And this extreme sentiment often means the big trend is just beginning.
#Gate广场五月交易分享