S&P 500 Stalls as PPI Inflation Edges Higher - Market Braces for Crypto Rotation

Inflation's stubborn grip tightens—PPI climbs while traditional markets hit the brakes.

Wall Street's Pause Button

Another inflation surprise sends conventional portfolios scrambling. The producer price index ticks upward, stalling the S&P 500's momentum dead in its tracks. Meanwhile, digital asset markets hover like vultures waiting for capital flight.

Crypto's Inflation Hedge Narrative Strengthens

As traditional finance grapples with persistent price pressures, Bitcoin and major altcoins maintain relative stability. The divergence speaks volumes—while stocks choke on inflation data, crypto markets digest the news with barely a flinch. Smart money knows where true inflation protection lives.

Rotation Season Approaches

Watch the institutional flows. Every basis point of unexpected inflation pushes more capital toward decentralized alternatives. The old guard's inflation-fighting tools look increasingly rusty next to programmable monetary policy and fixed-supply digital assets.

Because nothing says 'hedge against monetary debasement' like watching central bankers rediscover inflation targets they supposedly already mastered. The future isn't coming—it's already here, and it's blockchain-native.

TipRanks Black Friday Sale

• Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
• Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off

PPI grew by 0.3% month-over-month, in line with the consensus estimate but rising from a 0.1% decline in August. Furthermore, PPI ROSE by 2.7% year-over-year, matching the estimate as well. PPI measures the average change in wholesale prices that businesses receive for their goods and services.

Core PPI Below Estimates as Wholesale Goods Prices Jump

Core PPI, which excludes volatile food and energy prices, grew by 0.1% month-over-month and 2.6% year-over-year. Analysts were expecting 0.3% and 2.7%, respectively. The year-over-year growth rate is the lowest since July 2024.

Within PPI, wholesale goods prices rose 0.9%, the highest increase since February 2024. Energy goods, which grew by 3.5%, were responsible for 60% of the increase. Wholesale services prices were unchanged.

The BLS has not yet provided a publication date for October’s PPI report.