April Producer Price Index jumps 1.4% MoM, nearly triple forecasts, fueling concerns over persistent inflation and Fed policy.
Dow Jones Industrial Average futures fell below 49,500 in early US trading Wednesday, extending losses after April’s Producer Price Index (PPI) surged 1.4% month-over-month, nearly triple the 0.5% consensus. The S&P 500 and Nasdaq also retreated as traders reassessed inflation risks amid hawkish Fed commentary and geopolitical tensions.
Headline PPI rose 6% year-over-year, the highest since December 2022, while core PPI climbed 1% MoM and 5.2% YoY, both exceeding forecasts. Energy prices led gains, with gasoline up 15.6%, but services inflation also accelerated, signaling broader pipeline pressures.
Boston Fed President Susan Collins suggested a rate hike remains possible, adding to market unease. The data follows a high-stakes Senate vote on Fed leadership and President Trump’s arrival in Beijing for trade talks, further dampening risk appetite.