The latest US producer price index (PPI) data was released on February 17, 2024, and the value showed a larger than expected increase, which had a negative impact on the US stock market。PPI for final demand rose 0 in January.3%, 0 in December.1%。This increase is higher than the 0.1% rebound, suggesting that inflation pressures may not be slowing as hoped。The data led to a rise in U.S. Treasury yields and a slight rise in the dollar against the yen, suggesting that the Federal Reserve may delay rate cuts。

Stocks reacted negatively to the news, with major indexes such as the S & P 500, Dow Jones Industrial Average and Nasdaq Composite all closing lower.。Nasdaq experiences biggest drop, down 0.82%。The drop ended a five-week rally in the broader market index on concern that the Federal Reserve may delay a rate cut due to an unexpected rise in producer prices。

The impact of the producer price index has been further amplified as consumer price data (CPI) show an unexpected rise in inflation, and these reports have affected market expectations of the Fed's monetary policy。Earlier this week, a higher-than-expected consumer price report triggered a sell-off in the stock market, while a slump in retail sales in January had initially fueled hopes of a rate cut.。However, the latest producer price index data has changed expectations, and market participants now expect the Fed may delay the first rate cut until after June.。

Producer price hikes were largely attributed to higher service costs, pushing up U.S. producer inflation in January.。After months of cooling, market sentiment was again stirred, with PPI rising by 0% on an unadjusted basis for the 12 months to January 2024..9%。Excluding food, energy and trade services, which are considered less volatile, the PPI rose by 0.6%

In response to the producer price index data, the market adjusted its view on the timing of the Fed's first rate cut, and Treasury yields soared。Two Fed officials expressed caution, stressing the need for more evidence that inflationary pressures are slowing before considering a rate cut.。