Today’s pullback wasn’t about price as much as policy. PPI came in hotter than expected, keeping inflation front and center, and then Trump announced Kevin Warsh as Powell’s successor at the Fed. Warsh is a longtime Fed insider who supports central bank independence and sticking closely to the Fed’s inflation and employment mandate, something markets didn’t read as especially dovish.
That showed up quickly under the surface. Bonds sold off modestly, yields moved higher, and gold and silver were hit hard, with silver seeing an especially sharp drop after a big run. Stocks stayed relatively contained, with SPY still hovering near its 50-day moving average, but AI names continue to digest Microsoft’s comments on heavy spending and slower cloud growth. For now, this looks more like short-term uncertainty being repriced than a major market breakdown, but it’s something to keep on the radar heading into next week.
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