A surprise spike in U.S. producer price inflation caused stock markets to pause, raising doubts about an imminent interest rate cut. The S&P 500 hit a new high, while the Russell 2000 fell 1.3%. The dollar rebounded by 0.5%, and oil prices spiked 2%.

The Fed’s rate cut expectations dropped to 90% from 100% after core PPI hit 3.7%, the highest in three years. Trump’s data war risks false calm, while European GDP shows mixed results. Trump meets Putin in Alaska to discuss Ukraine, as markets await China data and U.S. retail sales.

The U.S. economy’s foundation may be shakier than it appears, with AI and tech-related spending skewing the picture. Investment in AI has surged, while consumer spending and corporate bankruptcies raise concerns. Stock market concentration on a few big names poses risks if trends falter.

Read more at Yahoo Finance: PPI surprise clips doves’ wings