Good morning, this is Markets Desk with your midday briefing.
Producer prices are flashing a warning sign that traders cannot ignore. Upward revisions to prior readings have pushed month-over-month PPI figures to their worst levels since two thousand twenty two, with businesses absorbing inflation running near six and a half percent. That kind of revision cycle typically forces the Fed's hand on the timing of any rate relief.
Speaking of the Fed, Governor Michael Barr weighed in on artificial intelligence at Yale, cautioning that while AI could drive productivity gains and soften consumer prices, the benefits may concentrate at the top. His concern centers on whether the technology complements workers or displaces them, a distinction that carries real consequences for wage growth and long-run demand.
On the commodity side, crude oil is holding modest gains after President Trump signaled the United States does not need a deal with Iran, effectively keeping geopolitical risk premium baked into the barrel. WTI is up roughly a third of a percent on the session, while RBOB gasoline is pulling back just over one percent, leaving energy markets in a split trade heading into the close.
That's the tape. Markets Desk, signing off the floor.
