PPI Surprise Drives Rally, Rate-Hike Odds Dive
A better-than-expected PPI report triggered a broad market rally, sharply reduced rate-hike expectations, and sparked rotation into tech stocks.
Markets rallied strongly yesterday after the latest producer price index (PPI) came in below consensus, surprising to the downside. The data immediately shifted rate expectations, with the probability of a rate hike falling sharply.
Tech stocks led the rotation as investors moved away from defensive positions. Meanwhile, some earnings reports described as 'good' failed to meet market hopes, contributing to selective selling in individual names.
Source: FXStreet Forex News