Dow Jones Soars on Bullish Inflation Data—Traditional Markets Finally Catch Up to Crypto’s Lead
Inflation cools faster than Wall Street's overpriced coffee—and the Dow jumps on the news. Who says traditional finance can't have a good day?
Market Pulse Quickens
Traders cheered as the latest inflation print landed softer than expected. The Dow Jones Industrial Average climbed, echoing the optimism that's been fueling crypto rallies for months. Bonds dipped, stocks ripped—sounds familiar, right?
Behind the Numbers
No specific figures were dropped, but the trend’s clear: when inflation fears ease, risk assets rally. It’s the same playbook crypto’s been using—just with more suits and fewer memes.
Looking Ahead
If this keeps up, maybe the old guard will finally stop pretending Bitcoin’s a fringe asset. Or they’ll just take credit for the trend later—classic finance move.
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August’s producer price index (PPI), which measures inflation at the wholesale level, registered a monthly drop of 0.1%, below the consensus estimate for a rise of 0.3%. In addition, July’s reading was revised down to 0.7% from 0.9%. That’s a big relief, as July’s unrevised PPI marked the largest increase in over three years, stirring fears of sticky inflation. August’s PPI ROSE by 2.6% on a yearly basis, also below the estimate of 3.3%.
Soft Core PPI Strengthens Case for Fed Rate Cut
Core PPI, which excludes volatile food and energy items, fell by 0.1% month-over-month and rose 2.8% year-over-year. Economists were expecting a rise of 0.3% and 3.5%, respectively.
The data comes ahead of a pivotal Federal Open Market Committee (FOMC) meeting, where the central bank is widely expected to cut rates for the first time since December 2024. With lower inflation, the Fed has more incentive to lower rates, as a higher rate is necessary to combat higher prices.
