It is now the second consecutive beat on the Producer Prices Inflation report and there are many reasons to be concerned.
The effect of tariffs is starting to be felt, and with IEEPA tariffs getting ruled out by the Supreme Court, things could be turning ugly in the upcoming CPI reports.
Coming at 2.9% vs 2.6% expected on the headline and 3.6% vs 3% estimates on the Core, this morning's report sends out the inflationary fears that Markets have feared for long.
The worst about it is that the progress in inflation has been more consistent than the hopes for a one time boost only.
You can get access to the report right here.
Luckily for rate cut maximalists, risk-off flows are back on the table and this is supporting lower yields. Let's watch a couple morning reactions ahead of Month-End trading.
(P.S: Canadian GDP landed at -0.6% vs 0% expected – Rate hikes are not gonna be a now thing)
Core PPI (ex Energy and Food) since 2025 – Source: Trading Economics
Market Reactions
US Treasuries run higher (Yields lower)
US 10 Year Treasury Bond (CFD) – February 27, 2026 – Source: TradingView
Bonds are back on the bid despite the PPI report, indicating that Markets are actually more focused on the Middle East than anything else ahead of the weekend.
Markets are getting anxious about the US demanding that its staff and citizens in Israel leave the embassies and increase security measures.
S&P 500 30M Chart – February 27, 2026 – Source: TradingView
US Equities are taking a hit at the pre-open. Today will be a long session, particularly with month-end and weekend risk approaching.
Gold breaks back above $5,200
Gold 2H Chart – February 27, 2026 – Source: TradingView
Gold is now holding well above $5,200. To me, risk-premium is priced in already but if anything happens, a spike to all-time highs could easily occur.
Cryptos are tumbling
Current Session in Cryptos (09:30 A.M.) – Courtesy of Finviz
Oil update coming up very soon!
Keep a close eye on headlines and flows throughout the day as today is promised to be quite volatile.
Safe Trades!
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