Markets React to Hot PPI: What to Watch Today

Summary

US markets are opening near all-time highs after a volatile previous day, with semiconductors like Micron and Nvidia leading the charge. Today's key event was the release of Producer Price Index, or PPI, data at 8:30 AM Eastern Time. The core PPI month-over-month came in at a higher-than-expected 0.5%, and the overall PPI month-over-month was 1.4%, significantly above the forecast. This caused an initial pullback from all-time highs in the SPY and QQQ. While the broader market indices are showing some choppiness, the focus is shifting to semiconductors and memory stocks for potential upside. The analyst suggests caution for the opening minutes, recommending patience as the market digests the hot inflation data. The general strategy for longs remains focused on semiconductors and memory names, with Nvidia and AMD highlighted as potential plays if they break key resistance levels. For most other tickers, a neutral stance is advised, waiting for clearer direction after the initial market open.