Brothers, the CPI just gave the market a dose of reassurance, and now the PPI delivers some dovish data. U.S. July PPI came in flat at 0% month-over-month, below the market expectation of 0.2%. Year-over-year, it dropped from 5.5% to 4.7%. Core PPI rose 0.2% month-over-month but fell to 4.2% year-over-year. All of this points to one thing: upstream inflation in the U.S. is cooling down, and faster than the market anticipated. Why is this PPI so low? Mainly because energy and commodity prices are pulling it down. Energy prices dropped 3.1%, gasoline fell 5.7%, food decreased 0.9%, and final demand goods prices declined 0.7%. The cost pressure on businesses from raw materials and energy is easing, which means less motivation to keep raising prices for consumers down the line. But don’t rush to declare “inflation is over” just yet, brothers. Service prices are still sticky. Final demand service prices rose 0.2%, and portfolio management services even surged 6.5%. Excluding food, energy, and trade services, PPI rose 0.4% month-over-month. Simply put: goods are cooling off, but services haven’t fully come down yet. For the market, the most important takeaway from this data is that it weakens the case for the Fed to hike rates again in September. Cooling rate hike expectations ease upward pressure on U.S. Treasury yields and the dollar, which is relatively favorable for gold, Treasuries, and growth tech stocks. Especially for rate-sensitive sectors like the Nasdaq and AI stocks, this creates a more comfortable liquidity environment in the short term. That said, PPI is just one piece of the puzzle. Next, we’ll need to watch core PCE and employment data. Here’s my simple view: this is a market-friendly data point, but it’s not a reason to blindly chase the rally. The market is currently trading on “policy pressure easing,” not on inflation being completely eradicated. For brothers who are long-term DCA investors in the Nasdaq and tech ETFs, just stick to your original rhythm. One data point can change short-term pricing, but what truly determines long-term returns is corporate earnings and whether you can stay in the game.