Is a +1.3% PPI Spike About to Kill the Rate-Cut Dream?

September PPI exploded to +1.3% month-over-month against a +0.5% consensus, sending year-over-year producer inflation to +6.3% — a full percentage point above expectations. That print follows Wednesday’s hot CPI at +3.7% YoY, cementing a two-day inflation shock that has October rate-hike odds fluctuating between 27% and 58%. S&P 500 futures are down 0.35% pre-open while Nasdaq futures fall 1.29%, with gold surging 1.54% to $4,171 as a stagflation hedge gains traction.