Thursday's Final Takeaways: Crude Taps $103 & PPI Hotter than Expected

• August PPI came in slightly hotter than expected (0.4% MoM, 5.4% YoY), with goods prices and energy costs as major drivers.
• This has raised investor expectations for a Fed rate hike next week to about 70%, pushing Treasury yields higher.
• Crude oil prices (Brent and WTI) rose above $100/barrel due to US-Iran tensions, sparking concerns about global energy supplies and potential further inflation.
• Tomorrow's August CPI data is a key watch, with economists expecting annual headline inflation around 3.4% and core inflation near 2.4%, both above the Fed's 2% target.

The video highlights August's Producer Price Index (PPI) exceeding expectations, signaling persistent inflation and increasing the likelihood of a Fed rate hike. Rising crude oil prices, driven by geopolitical tensions, further exacerbate inflation concerns, leading to pressure on stocks and bond yields. Tomorrow's CPI data is anticipated to reinforce these inflationary pressures.