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According to Israeli Media: A Broad US–Israel Strike Campaign in Iran and Markets May Be Entering a Full Geopolitical Week

In the last hour, Israeli media is describing a large-scale, coordinated strike campaign inside Iran, framed not as a limited tactical action but as the opening phase of a broader, multi-day operation. The attack started about 1 hour and 15 minutes ago.

The emphasis in the coverage is clear: this is not only about symbolic targets. It is about degrading operational military capacity – particularly missile infrastructure that poses a direct threat to Israel – while simultaneously signaling that senior regime structures in Tehran are no longer insulated.

For markets, this distinction is critical. This is not just a daily headline event. It has the potential to define the entire trading week.

US and Israel’s Attacks in Iran: What Is Being Reported

According to Israeli media outlets and televised briefings:

1. A Wide Target Bank

The reported target list includes:

• Central Tehran sites

• Regime-linked compounds

• Military command and intelligence facilities

• Missile bases and infrastructure

• Sites associated with defense industries

• Locations in Isfahan, Kermanshah, Qom, Tabriz, Bushehr and other cities

The concentration of reported activity in central Tehran is notable. Commentators highlighted that in previous confrontations, strikes in the capital escalated later in the timeline. This time, central Tehran appears involved early.

2. Missile Capability Suppression

The strategic interpretation presented on Israeli broadcasts is that the scale and geography of the strikes indicate a focused attempt to suppress launch capabilities.

If missile systems are the core threat, then the broader “missile umbrella” becomes a target:

• Production facilities

• Storage depots

• Launchers

• Command and control nodes

• Associated defense industry infrastructure

The objective, as framed in Israeli media, is to reduce the probability and scale of retaliatory missile fire.

3. Signaling Toward Regime Leadership

Reports referencing areas near high-level leadership compounds in Tehran are being interpreted domestically as a signal: regime structures are not immune.

Even if senior figures are not physically present at those sites, the messaging impact is strategic. The narrative being presented is that deterrence boundaries have shifted.

4. US Coordination

Israeli media coverage repeatedly describes the operation as coordinated with the United States. Public American messaging has so far appeared more limited, potentially due to timing and internal communication cycles, but Israeli commentary characterizes the move as a joint alignment rather than a unilateral Israeli action.

5. Airspace and Emergency Measures

Airspace closures and emergency readiness steps underscore that retaliation risk is being treated as real and immediate.

Why This Is a Week, Not a Day

Markets price escalation pathways, not just initial events.

A single strike often produces:

• An oil spike

• A volatility surge

• A defensive bid

But a structured multi-day campaign produces rolling repricing.

If additional strike waves unfold, each wave becomes a new data point. The question shifts from “what happened” to:

• Is retaliation immediate or delayed?

• Is escalation regional or contained?

• Are missile systems significantly degraded?

• Is energy infrastructure at risk?

This is why positioning for the week matters more than reacting to the first overnight move.

Two Market Paths to Prepare For

Path A: Sustained Risk-Off

If markets conclude escalation risk is persistent:

• Oil could maintain a geopolitical premium

• Gold could remain bid

• Volatility could expand structurally

• High-beta equities could face pressure

In this regime, liquidity and capital preservation dominate.

Path B: Fast Risk-On Reversal

If markets interpret the campaign as strategically contained and retaliation as limited or impaired:

• Oil spikes may fade

• Volatility may compress

• Equity indices could stabilize quickly

• Risk assets may rebound sharply

Geopolitical weeks often produce exaggerated defensive positioning that later unwinds.

Preparation must include both scenarios.

The Strategic Variable: Retaliation Timing

Iran has publicly warned that any strike would trigger automatic response. The timeline and scale of that response remain the primary uncertainty variable.

Markets will price not the rhetoric, but the observable action.

If response appears constrained, markets may pivot faster than headlines suggest.

If response broadens, volatility will not be confined to a single session.

Tactical Framework for InvestingLive Readers

This week demands discipline:

• Treat leverage cautiously.

• Expect gaps outside regular trading hours.

• Watch oil and volatility as regime indicators.

• Avoid chasing first moves.

• Focus on position sizing over narrative conviction.

This is not a one-candle event.

If Israeli media assessments are accurate and this is indeed the opening phase of a coordinated campaign, markets are entering a geopolitical regime week.

Stay flexible.Stay liquid.

Stay tuned for implications on the market at investingLive.com

This article was written by Itai Levitan at investinglive.com.

• Major US stock indices close lower. S&P and NASDAQ index down for the month
• Why private equity stocks are getting wrecked today
• Trump: Not happy with Iran but more talks expected on Friday
• Atlanta Fed GDPNow growth estimate for Q1 3.0% versus 3.1% last
• Iran strikes loom large over today’s trade
• Silver sprints higher, gains more than 5%
• US December construction spending +0.3% vs +0.3% expected
• Tech sector under pressure: Energy and healthcare offer a safe haven
• Canada Q4 GDP -0.6% vs 0.0% expected
• US January PPI final demand Y/Y +2.9% vs +2.6% expected
• The USD is little changed to start the NA session. What next technically?
• Germany February preliminary CPI +1.9% vs +2.0% y/y expected
• How have interest rate expectations changed after this week’s events?
• investingLive European markets wrap: Dollar steady, risk trades on edge amid cautious mood

The North American session evolved into a steady shift toward caution as markets moved away from early stability and into a broader risk-off tone. What began as a data-driven session ultimately turned into a reassessment of risk across multiple fronts —

• inflation persistence,
• emerging credit concerns, and
• rising geopolitical uncertainty.

Equity markets struggled to gain traction throughout the day, with sellers gradually taking control as investors digested stronger-than-expected inflation data and signs of stress building beneath the surface of financial markets. By the close, the major US indices finished lower, capping a difficult February for growth-oriented stocks.

The NASDAQ led declines for the month with a decline of -3.3%, highlighting continued pressure on valuation-sensitive sectors, while the Dow showed relative resilience as capital rotated toward more defensive and cyclically stable names. The broader message from equities was clear: investors are becoming less comfortable with the assumption of imminent Federal Reserve easing, and the concerns about AI pace continuing.

Inflation back in focus

The catalyst reinforcing caution for inflation came from the latest US producer price data. January PPI surprised to the upside (2.9% versus 2.6% expected), reminding markets that inflation pressures remain sticky even as growth stays firm.

This combination is particularly challenging for risk assets. Strong growth normally supports equities, but when accompanied by persistent inflation, it instead implies policy may remain restrictive longer than investors had anticipated.

Supporting data painted a picture of an economy that is slowing only modestly:

• Atlanta Fed GDPNow: Q1 growth estimate eased slightly to 3.0% from 3.1%

• US construction spending: +0.3% (in line with expectations)

The takeaway was not economic weakness — but rather economic resilience that delays rate cuts, a dynamic markets increasingly view as unfavorable for equities.

Credit concerns emerge beneath the surface

While macro data shaped the backdrop, the most notable equity theme came from sharp selling in private-equity-linked firms. Shares across the sector fell aggressively, signaling rising investor concern about leveraged finance exposure and private credit valuations.

Key declines included:

• Jefferies −10.3%

• Apollo −8.4%

• KKR −7.3%

• Ares −7.1%

• Goldman Sachs −7%

The selling followed warnings tied to collateral shortfalls and leveraged loan exposure, reviving fears that higher interest rates are beginning to pressure financing structures built during the ultra-low-rate era.

Importantly, markets reacted not just to one event, but to what it potentially represents — hidden fragility within private credit markets.

Geopolitics adds another layer of uncertainty

At the same time, geopolitical risks intensified as headlines surrounding potential Iran-related strikes circulated through the session. The uncertainty helped keep risk appetite contained and added an additional inflation premium through energy-market sensitivity.

The geopolitical backdrop reinforced defensive positioning rather than triggering panic, but it contributed to the steady erosion of equity momentum as the day progressed.

Commodities respond: silver surges

One of the clearest expressions of the day’s macro shift appeared in commodities markets.

Silver surged more than 6%, benefiting from a combination of forces:

• renewed inflation concerns after PPI,

• safe-haven demand amid geopolitical tensions,

• continued structural industrial demand tied to electrification themes.

Gold also remained firmly supported, reflecting growing demand for real assets as investors hedge both inflation and macro uncertainty.

Cross-market message

Across asset classes, markets appeared to be transitioning away from the early-year “soft landing with rapid easing” narrative toward a more complex late-cycle environment.

The session revealed several emerging themes:

• Higher-for-longer rate expectations returning

• Credit sensitivity becoming a market focus

• Rotation away from leverage and duration risk

• Demand increasing for inflation hedges and real assets

Rather than a single catalyst driving markets, the day reflected a convergence of pressures — inflation persistence, financial-system stress signals, and geopolitical risk — each reinforcing the others.

Bottom line

The North American session marked a subtle but important shift in tone. Economic data continues to show resilience, but that strength is now working against risk assets by keeping monetary policy restrictive. At the same time, cracks appearing in leveraged finance and rising geopolitical tensions are encouraging investors to reduce exposure to riskier segments of the market.

In short, markets are beginning to trade less on optimism about growth and more on risk management and capital preservation — a transition that often defines the later stages of a cycle.

This article was written by Greg Michalowski at investinglive.com.

• Major US stock indices close lower. S&P and NASDAQ index down for the month
• Why private equity stocks are getting wrecked today
• Trump: Not happy with Iran but more talks expected on Friday
• Atlanta Fed GDPNow growth estimate for Q1 3.0% versus 3.1% last
• Iran strikes loom large over today’s trade
• Silver sprints higher, gains more than 5%
• US December construction spending +0.3% vs +0.3% expected
• Tech sector under pressure: Energy and healthcare offer a safe haven
• Canada Q4 GDP -0.6% vs 0.0% expected
• US January PPI final demand Y/Y +2.9% vs +2.6% expected
• The USD is little changed to start the NA session. What next technically?
• Germany February preliminary CPI +1.9% vs +2.0% y/y expected
• How have interest rate expectations changed after this week’s events?
• investingLive European markets wrap: Dollar steady, risk trades on edge amid cautious mood

The North American session evolved into a steady shift toward caution as markets moved away from early stability and into a broader risk-off tone. What began as a data-driven session ultimately turned into a reassessment of risk across multiple fronts —

• inflation persistence,
• emerging credit concerns, and
• rising geopolitical uncertainty.

Equity markets struggled to gain traction throughout the day, with sellers gradually taking control as investors digested stronger-than-expected inflation data and signs of stress building beneath the surface of financial markets. By the close, the major US indices finished lower, capping a difficult February for growth-oriented stocks.

The NASDAQ led declines for the month with a decline of -3.3%, highlighting continued pressure on valuation-sensitive sectors, while the Dow showed relative resilience as capital rotated toward more defensive and cyclically stable names. The broader message from equities was clear: investors are becoming less comfortable with the assumption of imminent Federal Reserve easing, and the concerns about AI pace continuing.

Inflation back in focus

The catalyst reinforcing caution for inflation came from the latest US producer price data. January PPI surprised to the upside (2.9% versus 2.6% expected), reminding markets that inflation pressures remain sticky even as growth stays firm.

This combination is particularly challenging for risk assets. Strong growth normally supports equities, but when accompanied by persistent inflation, it instead implies policy may remain restrictive longer than investors had anticipated.

Supporting data painted a picture of an economy that is slowing only modestly:

• Atlanta Fed GDPNow: Q1 growth estimate eased slightly to 3.0% from 3.1%

• US construction spending: +0.3% (in line with expectations)

The takeaway was not economic weakness — but rather economic resilience that delays rate cuts, a dynamic markets increasingly view as unfavorable for equities.

Credit concerns emerge beneath the surface

While macro data shaped the backdrop, the most notable equity theme came from sharp selling in private-equity-linked firms. Shares across the sector fell aggressively, signaling rising investor concern about leveraged finance exposure and private credit valuations.

Key declines included:

• Jefferies −10.3%

• Apollo −8.4%

• KKR −7.3%

• Ares −7.1%

• Goldman Sachs −7%

The selling followed warnings tied to collateral shortfalls and leveraged loan exposure, reviving fears that higher interest rates are beginning to pressure financing structures built during the ultra-low-rate era.

Importantly, markets reacted not just to one event, but to what it potentially represents — hidden fragility within private credit markets.

Geopolitics adds another layer of uncertainty

At the same time, geopolitical risks intensified as headlines surrounding potential Iran-related strikes circulated through the session. The uncertainty helped keep risk appetite contained and added an additional inflation premium through energy-market sensitivity.

The geopolitical backdrop reinforced defensive positioning rather than triggering panic, but it contributed to the steady erosion of equity momentum as the day progressed.

Commodities respond: silver surges

One of the clearest expressions of the day’s macro shift appeared in commodities markets.

Silver surged more than 6%, benefiting from a combination of forces:

• renewed inflation concerns after PPI,

• safe-haven demand amid geopolitical tensions,

• continued structural industrial demand tied to electrification themes.

Gold also remained firmly supported, reflecting growing demand for real assets as investors hedge both inflation and macro uncertainty.

Cross-market message

Across asset classes, markets appeared to be transitioning away from the early-year “soft landing with rapid easing” narrative toward a more complex late-cycle environment.

The session revealed several emerging themes:

• Higher-for-longer rate expectations returning

• Credit sensitivity becoming a market focus

• Rotation away from leverage and duration risk

• Demand increasing for inflation hedges and real assets

Rather than a single catalyst driving markets, the day reflected a convergence of pressures — inflation persistence, financial-system stress signals, and geopolitical risk — each reinforcing the others.

Bottom line

The North American session marked a subtle but important shift in tone. Economic data continues to show resilience, but that strength is now working against risk assets by keeping monetary policy restrictive. At the same time, cracks appearing in leveraged finance and rising geopolitical tensions are encouraging investors to reduce exposure to riskier segments of the market.

In short, markets are beginning to trade less on optimism about growth and more on risk management and capital preservation — a transition that often defines the later stages of a cycle.

This article was written by Greg Michalowski at investinglive.com.

Both the S&P index only NASDAQ index closed lower for the month. The S&P fell -0.87% after a gain of 1.37% in the month of January. The NASDAQ index-3.38%. That was its worst month since March 2025. The Dow industrial average rose by a modest 0.17%.

For the trading day, the major indices are all closing lower:

• Dow industrial average -1.05%
• S&P index -0.43%
• NASDAQ index -0.92%.

For the trading week:

• Dow industrial average -1.31%
• S&P index -0.44%
• NASDAQ index -0.95%

Some of the loser this week:

Consumer & Retail Weakness

• Whirlpool: -19.00% — largest decline; cyclical consumer demand concerns and rate sensitivity weighing on appliances.

• Macy’s Inc: -11.78% — continued pressure on discretionary retail spending outlook.

• Dollar Tree: -5.98% — defensive retail also seeing margin and consumer-trend worries.

• Best Buy: -3.92% — electronics demand uncertainty persists.

• Nike: -4.91% — growth expectations moderating.

High-Beta Growth & Tech Selling

• First Solar: -18.51% — clean energy names hit hard amid rate/yield volatility.

• Zoom Video: -18.11% — growth multiple compression continues.

• NVIDIA: -6.65% — profit-taking despite strong AI narrative.

• Synopsys: -5.90%

• Broadcom: -3.92%

• Micron: -3.69%

➡️ Semis and AI leaders saw rotation and valuation pressure, not outright fundamental deterioration.

Financials Under Pressure

• American Express: -10.80%

• PNC Financial: -9.00%

• Wells Fargo: -8.21%

• Bank of America: -6.13%

• Morgan Stanley: -5.09%

• Citigroup: -5.02%

• Goldman Sachs: -6.72%

➡️ Lower yields and macro uncertainty weighed broadly on banks and credit-sensitive names.

Travel & Cyclicals Rolling Over

• United Airlines Holdings: -5.95%

• Southwest Airlines: -5.45%

• Delta Air Lines: -5.37%

• American Airlines: -3.83%

➡️ Cyclical reopening trades softened as growth expectations cooled.

Industrials / Defense

• Raytheon: -17.17% — notable individual weakness within defense.

For the trading month, the biggest losers (selected highlights)

Crypto & Crypto-Linked Assets Hit Hard

• BTCUSD: -26.48%

• Grayscale Bitcoin Trust (BTC): -26.39%

• Bitcoin Futures: -26.05%

• Robinhood Markets: -26.64%

• Strategy (MicroStrategy): -18.27%

➡️ A broad risk unwind in crypto spilled into crypto-levered equities and trading platforms as momentum reversed sharply.

High-Growth Tech & AI Names Repriced Lower

• Snowflake: -22.09%

• Zoom Video: -23.16%

• CrowdStrike: -20.72%

• Palo Alto Networks: -18.95%

• Synopsys: -19.04%

• AMD: -20.80%

• Microsoft: -18.46%

• IBM: -18.42%

• Intuit: -24.07%

➡️ Investors rotated out of long-duration growth and AI leaders, reflecting valuation compression rather than a single catalyst.

Speculative / High-Beta Growth Under Pressure

• SoFi Technologies: -27.80%

• Trump Media & Technology Group: -21.31%

➡️ Higher-beta retail favorites were among the hardest hit as risk appetite faded.

☀️ Cyclicals & Industrials Weakening

• First Solar: -20.97%

• Raytheon: -36.14% (largest decline of the group)

➡️ Cyclical and policy-sensitive sectors saw aggressive repositioning.

🏥 Defensive Growth Also Pulled Lower

• Boston Scientific: -18.06%

➡️ Even higher-quality defensive growth names were not immune, signaling broad market de-risking.

Biggest winners this month (selected highlights)

🔌 AI Infrastructure & Connectivity Leaders

• Corning: +44.24% — strongest performer; beneficiary of data-center and fiber demand tied to AI buildout.

• Ciena Corp: +35.51% — networking infrastructure strength as bandwidth demand accelerates.

• Dell Technologies: +26.11%

• Arm Holdings: +15.91%

• Taiwan Semiconductor: +9.46%

➡️ Capital spending tied to AI infrastructure and hardware buildout remained a dominant market theme.

Industrials, Transport & Cyclical Rebound

• FedEx: +23.01%

• Caterpillar: +15.50%

• Southwest Airlines: +20.53%

• Marriott International: +9.48%

➡️ Investors rotated toward real-economy cyclicals, signaling confidence in economic resilience.

Energy Strength

• Occidental Petroleum: +18.45%

• Baker Hughes: +15.22%

• Exxon Mobil: +9.91%

• Chevron: +9.90%

➡️ Rising commodity expectations and steady cash-flow stories supported energy stocks.

Healthcare & Defensive Growth

• Moderna: +18.26%

• Merck & Co: +15.77%

• Biogen: +9.70%

• Stryker: +8.32%

➡️ Healthcare attracted flows as investors balanced growth exposure with defensive positioning.

Consumer & Media Winners

• Tapestry: +23.38%

• Target: +11.80%

• Walmart: +9.73%

• Netflix: +13.71%

• Live Nation Entertainment: +9.86%

• Paramount Skydance: +19.14%

• Twitter Inc: +9.19%

➡️ Select consumer and entertainment names benefited from improving sentiment and positioning shifts.

Overall Monthly Takeaway for the winners

The winners this month reveal a clear rotation beneath the market surface:

• AI spending broadened beyond software into infrastructure and hardware.

• Investors favored cash-flow-generating cyclicals and energy over speculative growth.

• Healthcare and defensive growth attracted diversification flows.

• The market rewarded tangible earnings visibility and real-economy exposure.

Overall Monthly Takeaway for the losers

This month’s losers point to a clear regime shift in market positioning:

• Crypto weakness led the risk-off move, dragging related equities sharply lower.

• AI and software leaders experienced valuation resets after extended upside runs.

• Selling was systematic and cross-sector, not tied to one industry.

• Markets rotated away from momentum, leverage, and long-duration growth assets.

This article was written by Greg Michalowski at investinglive.com.

US Pres. Trump is speaking on Iran and says:

• Not happy with Iran, but were talks expected Friday.
• Has not made a decision on Iran and not happy with how they negotiate.
• Iran cannot have nuclear weapon.
• There may or may not be a regime change in Iran.
• Wants to make a deal with Iran.
• Asked about using military force in Iran, “don’t want to but sometimes you have to
• Iran isn’t saying the golden words “No nuclear weapon”

This article was written by Greg Michalowski at investinglive.com.

The Atlanta Fed GDPNow growth estimate for Q1 dipped to 3.0% from 3.1% last. In their own words

The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the first quarter of 2026 is 3.0 percent on February 27, down from 3.1 percent on February 24. After this morning’s releases from the US Census Bureau and the US Bureau of Labor Statistics, the nowcasts of first-quarter real gross private domestic investment growth and real government expenditures growth decreased from 8.5 percent and 1.6 percent, respectively, to 7.9 percent and 1.5 percent.

The next GDPNow update is Monday, March 2. Please see the “Release Dates” tab below for a list of upcoming releases.

This article was written by Greg Michalowski at investinglive.com.

There is no sense over-analyzing price action today across markets. Yes, there is the usual software anxiety in stock markets but the overarching theme across bonds, FX, commodities and precious metals is simple — angst about US strikes on Iran.

That thinking has US 10-year yields below 4% for the first time since November while oil prices are up more than 2%. It’s also lent a bid to precious metals and the US dollar, though (unsurprisingly) the loonie and Swiss franc are top performers.

Now, no one really knows what will happen in the Middle East. Clearly, Trump is at least trying to put maximum pressure on negotiations via a massive US military build up in the region. Yesterday, various reports said negotiations were positive but we didn’t hear that from the only person who matters: Trump.

At the same time, what people are saying matters much less than what they’re doing and the US has evacuated bases near Iran while moving massive amounts of steel to the region.

I would highlight a pair of news items in the past hour or so, both of which have trimmed oil’s gain:

1) US Secretary of State Marco Rubio announced a March 2-3 trip to Tel Aviv.

Would he be doing that at the same time bombs were falling? I tend to think not and others might argue that the announcement of the trip is meant as a diversion to get Iran to lower its guard.

2) JD Vance spoke to ABC and said any actions would be limited.

“The idea that we’re going to be in a Middle Eastern war for years with
no end in sight — there is no chance that will happen,” Vance told the
Post. He described the range of options as strikes that would “ensure
Iran isn’t going to get a nuclear weapon” or actions that could lead to a
diplomatic solution.

The nuclear bit is particularly notable as there is nothing there about regime change or about crippling Iran’s oil exports. Yes, Iran could be forced to shut in via circumstances and could try to shut the Strait of Hormuz but I don’t think they will take that course of action if they don’t sense a US effort to topple the regime.

All that said, Trump is about the least-predictable person in history so this could go in any direction. I don’t fault those buying bonds in this environment but the long history of Middle East strikes and wars arguing for selling oil as the dust settles.

This article was written by Adam Button at investinglive.com.

• Prior was +0.5%

Given the jumps in shares of CAT and DE, there better be some construction spending in the pipeline.

This article was written by Adam Button at investinglive.com.

• High-yield 3.790%
• WI level at the time of the auction 3.790%
• Tail 0.0 basis points vs 0.4 basis point six-month averages
• Bid to cover 2.50X vs 6 month average of 2.46X
• Dealers 10.4% versus 11.4% six-month average
• Directs 26% versus 26.0% six-month average
• Indirects 63.6% vs 62.6% six-month average

AUCTION GRADE: B-

The auction of $44 billion of 7 year notes completes the coupon auctions for the week. The 2 and 5 year note auction’s were met with average to below average demand. The 7 year note was marginally higher than average. I give it a grade of B-.

The Tail was 0.0 basis points which when compared to the six-month average was 0.4 basis points last. The bid to cover was marginally higher than the average. Indirect buying was 1% higher than the average while domestic buying from direct bidders was right on the average. Overall the dealers were saddled with 1% less than the norm.

Overall, the auction was a little bit better than average.

With the two-year down -3. Ppoint basis points, and the 10 year also down -3.1 basis points. The 10 year yield is just above the 4% level at 4.017%.

Meanwhile, US stocks continue to slide. The NASDAQ index is down -2.0%. The S&P is down -1.16%. The NASDAQ index fell by -2.03% back on February 12 and by -2.39% back on January 20. Today’s decline is the 3rd worst day for the year.

Shares of Nvidia are now down -5.2% . The other chipmakers like Broadcom are also sharply lower (-6.67%). AMD shares are down -4.27%. Intel shares are down -3.7%,

This article was written by Greg Michalowski at investinglive.com.

• Prior was +2.6%
• GDP -0.2% q/q vs +0.6% prior
• Real GDP increased 1.7% in 2025

The number might not be as bad as it looks as the fourth quarter decrease was largely due to withdrawals of business
inventories following inventory accumulations in the third quarter.

This article was written by Adam Button at investinglive.com.

• Prior YoY was +3.0%
• PPI M/M +0.5% vs 0.3% expected
• Prior +0.5% (revised to 0.4%)

Core PPI

• Core PPI Y/Y +3.6% vs +3.0% expected
• Prior +3.3%
• Core PPI M/M +0.8% vs +0.3% expected
• Prior Core PPI MoM +0.7% (revised to 0.6%)
• PPI Ex Foor/Energy/Trade YoY 3.4% vs 3.5% last month
• PPI Ex Food/Energy/Trader MoM 0.3% vs 0.3% last month (revised from 0.4% last month)

For the second month in a row, the PPI came in higher than expectations. The data suggests the despite all the chatter about inflation moving lower, it is still sticky and is what is bothering people.

US stocks are sharply lower with the Nasdaq down -245 points. The Dow is down -571 points. The S&P is down -63 points.

Yields in the US are still lower on the day with the

• 10 year below 4.0% at 3.984%.
• 2 year yield is down -4.2 basis points at 3.405%.

WHAT THE US PPI MEASURES?

The Producer Price Index (PPI) is an economic indicator that measures the average change over time in the selling prices received by domestic producers for their output. In simpler terms, it tracks inflation from the perspective of the seller/business rather than the consumer like the Consumer Price Index (CPI).

This article was written by Greg Michalowski at investinglive.com.

• Prior +2.1%
• HICP +2.0% vs +2.1% y/y expected
• Prior +2.1%
• Core CPI Y/Y +2.5% vs +2.5% prior

We have slight misses here but that was pretty much expected after the softer German states readings here. Having said that, the core measure matched the prior reading. The data won’t change anything for the ECB. The market reaction has been muted given no change to interest rates outlook.

This article was written by Giuseppe Dellamotta at investinglive.com.