The latest released data on the US Producer Price Index ( PPI ) has raised widespread concerns in the financial markets. The PPI is an important indicator that measures changes in production costs for businesses, covering various factors such as raw materials, energy, and labor. When these costs rise, it is usually reflected in the pump of the PPI, and may eventually be passed on to retail prices, affecting the daily lives of ordinary consumers.

The announced PPI increased by 3.3% year-on-year, exceeding market expectations. This data may have a significant impact on the Federal Reserve's monetary policy, making it more cautious when considering interest rate cuts and possibly delaying the timetable for the first rate cut. Lowering interest rates typically stimulates economic activity, but it may also exacerbate rising cost pressures. In contrast, maintaining high interest rates or continuing to raise rates helps to curb inflation.

As a result, the market's originally expected possibility of a rate cut in September has significantly decreased. This sudden change has led to a widespread decline in the prices of various risk assets, including multiple markets affected by the impact of cryptocurrencies.

For investors who hold an optimistic view of the market outlook, this pullback may be seen as a new entry opportunity. However, considering the uncertainty of economic data and the variability of policy direction, investors still need to remain vigilant and closely monitor subsequent economic indicators and central bank decisions.