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PPI posted its largest monthly increase since 2022. (0:15) Nebius revenue surged nearly sevenfold. (1:24) Meta employees protest workplace tracking software. (2:17)

This is an abridged transcript of the podcast:

Our top story so far, sticky inflation alarms sounded this morning as wholesale prices posted their biggest monthly jump since the height of the post-Covid surge.

The April Producer Price Index rose 1.4% month over month, well above the 0.5% consensus. March was revised up to 0.7%.

On a year-over-year basis, PPI climbed 6%, the largest annual increase since December 2022.

Much of April’s increase came from services, which rose 1.2%, with trade services accounting for a significant share. Margins for machinery and equipment wholesaling jumped 3.5%.

Core PPI, excluding food and energy, increased 1% for the month, lifting the annual rate to 5.2%.

Pantheon Macro noted one potential offset for policymakers: two key components that feed into core PCE — portfolio management and air transportation — were relatively soft.

Fed swaps traders appeared to focus on that nuance, with the odds of a rate hike by year-end easing slightly, though markets still see rates higher at the end of 2027 than they are today.

“The big picture is that the inflation data are uncomfortably hot for the FOMC right now,” Pantheon said, adding that while tariff effects are largely passed through and rent inflation is expected to cool, the recent run of data remains above the Fed’s 2% target.

Among active stocks, Nebius (NBIS) is rallying after reporting a near sevenfold jump in revenue, driven by surging AI demand. CEO Arkady Volozh said the company continues to see “unprecedented demand” for compute.

Alibaba (BABA) posted 11% like-for-like revenue growth in Q4, but profitability fell as higher AI spending and quick-commerce subsidies compressed margins. Seeking Alpha analyst Danil Sereda noted that while free cash flow is negative and margins are under pressure, Alibaba is deploying its $52.4B three-year capex plan to reinforce its AI position.

Wolfspeed (WOLF) extended its six-day rally, rising another 20% after thematic research firm Citrini named it a “single-stock highlight” tied to the AI infrastructure buildout.

Citrini described Wolfspeed as “the platonic ideal” of a company that overexpanded into weak demand and entered bankruptcy but argued the post-restructuring setup is now compelling.

And in other news of note, employees at Meta Platforms (META) staged protests across multiple U.S. offices over newly installed mouse-tracking software, distributing flyers and petitions criticizing what they described as intrusive workplace surveillance.

“Don’t want to work at the Employee Data Extraction Factory?” one pamphlet read, according to Reuters. The materials also cited the National Labor Relations Act, noting that workers are legally protected when organizing to improve working conditions.

The protests come ahead of Meta’s planned 10% workforce reduction and reflect concerns that employee activity data could be used to train AI systems that may ultimately automate jobs.

And in the Wall Street Research Corner, Wells Fargo is urging investors to “take advantage of euphoric sentiment” by selling call options after a strong Q1 earnings season and the market’s recent rebound.

Strategists note that upside options pricing has become stretched, with three-month far out-of-the-money Nasdaq 100 (QQQ) calls trading near the 100th percentile versus the past year — a sign investors are paying up for upside exposure.

While they remain bullish on AI, they argue this is an opportune moment to collect option premium.

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