PPI Report and Treasury Yields Set to Dominate Market Action Today
The August PPI report is out today, alongside Weekly Initial and Continuing Jobless Claims. This data will give markets insight into pipeline price pressures and help traders assess whether inflation is moderating or reaccelerating.
The Treasury yields are likely to react quickly to any meaningful surprise in the PPI numbers, and this could have a ripple effect on equities, the dollar, and expectations for Federal Reserve policy. The combination of today's PPI and tomorrow's CPI reports could produce a significant repricing in Treasury yields if they reinforce the same inflation narrative.
The 30 Year Bond Auction at 1:00PM ET is another potential volatility window to watch, as Treasury activity remains significant throughout the day.
We will also be discussing the performance of various stocks today, including SPY, QQQ, AAPL, MSFT, NVDA, GOOGL, META, and TSLA. The reaction to inflation data could impact these stocks differently, with some potentially benefiting from a decline in Treasury yields while others may suffer.