Overview

• The Producer Price Index (PPI) rose 0.4% in January, outpacing expectations of 0.3%, with annual wholesale inflation increasing to 3.5%.
• Core wholesale inflation, excluding volatile food and energy prices, rose 3.6% year-over-year but showed a smaller-than-expected monthly gain of 0.1%.
• President Trump plans to announce reciprocal tariffs targeting countries with levies on U.S. goods, following recent tariffs on steel and aluminum imports.
• Economists suggest rising inflation and tariff policies could limit Federal Reserve rate cuts, with officials signaling a 'restrictive' stance for now.
• Market indices, including the Dow and Nasdaq, posted modest gains as investors balanced inflation concerns with solid corporate earnings reports.