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The Hot CPI And PPI Scare Isn't Breaking This Rally
2026-05-15 · via All Articles on Seeking Alpha

Summary

  • I can't remember the last time I was this bullish on the broader markets. After this week's hot CPI and PPI prints, the response was surprisingly calm.
  • The April PPI rose 1.4% m/m, the largest monthly increase since March 2022. That said, services (not goods) drove most of that increase (60%).
  • I still don’t see broad inflation contagion beyond pockets of the economy that have direct exposure to fuel.
  • I see early signs of rotation within semiconductors, with momentum names lagging higher-quality stocks like Nvidia or TSMC. I’d watch for an acceleration in this trend.
Two athletes running on track from above with long shadows

Valerii Apetroaiei/iStock via Getty Images

At the end of last week, I was meditating about the duration of the current rally from the March 30 lows. In fact, in my last macro coverage, I explained why a small 5% pullback in the broader markets

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