Nasdaq 100 Tumbles—Soft PPI Fails to Lift the Index
Tech bulls got a rude awakening today as the Nasdaq 100 slid despite cooler-than-expected PPI data. The market’s shrug at inflationary relief signals deeper jitters—maybe Wall Street’s algo-traders finally remembered that ‘soft landing’ isn’t a guaranteed perk.
The PPI Paradox
Producer prices eased, but tech stocks didn’t get the memo. Either traders are pricing in another Fed head fake, or they’re too busy chasing crypto pumps to care about traditional macro signals anymore.
Cynic’s Corner
Another day, another ‘disconnect’ between data and market logic. But hey, at least the volatility gives CNBC something to hyperventilate about between commercial breaks.
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In May, PPI ROSE by 0.1% month-over-month (MoM) compared to the estimate for 0.2%. That’s still higher than April’s PPI, which was revised to -0.2% from -0.5%. Furthermore, PPI increased by 2.6% on a yearly basis in May, in line with the estimate.
Core PPI, which excludes volatile food and energy prices, rose by 0.1% MoM and 3.0% year-over-year. Economists were expecting 0.3% and 3.1%, respectively.
Is the Good News Priced in?
The PPI report hasn’t resulted in gains for the Nasdaq 100 while the S&P 500 (SPX) is in the red as well. Both indexes have staged incredible recoveries from their April lows, with the NDX up by 27% since then. As a result, the market is likely taking a breather and could potentially consolidate and trade in a range or progress lower.
The Nasdaq 100 is down by 0.07% at the time of writing.
