May PPI Red Hot, but Investors Focused on Friday's SpaceX (SPCX) IPO; Stocks May Take a Breather from Recent Selling

Depending on the index, for the second or third time in a week, stocks got hammered deeply, though none of the major indices are anywhere near correction territory, leaving hope for a quick rebound.

Equity holders may get a reprieve thanks to resumption of serious military engagements with Iran and President Trump's boasting about sneaking 100 million barrels through the Strait of Hormuz, undetected by Iranian forces. With the ceasefire collapsing rapidly, full-blown war could soon return to the region as the main issues in a number of peace proposals remain unresolved.

After Wednesday's CPI release for May scared off weak hands in the market, this morning's PPI data left futures relatively unscathed.

According to the BLS:

The Producer Price Index for final demand rose 1.1 percent in May, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices advanced 1.1 percent in April and 0.7 percent in March. (See table A.) On an unadjusted basis, the index for final demand increased 6.5 percent for the 12 months ended in May, the largest 12-month rise since moving up 7.4 percent in November 2022.

Nearly 80 percent of the May advance in final demand prices is attributable to a 2.8-percent increase in the index for final demand goods. Prices for final demand services moved up 0.3 percent.

The index for final demand less foods, energy, and trade services rose 0.8 percent in May, the largest advance since increasing 0.9 percent in March 2022. For the 12 months ended in May, prices for final demand less foods, energy, and trade services moved up 5.1 percent, the largest 12-month rise since jumping 5.5 percent in October 2022.

Despite the major headline numbers being the worst in roughly four years, stock enthusiasts seem to be ready for some buy-the-dip bottom fishing, profits having been taken and ready for reinvestment.

It's hard ot tell whether the market is serious or this morning's futures are merely a head-fake, with the major indices down 4-6% from recent highs. Considering most of the main issues - Iran, inflation, cost of living - the White House narrative remains positive, and that matters greatly to the sales forces in lower Manhattan.

Overnight, Asian stocks were mixed, but mostly lower. This morning, European bourses are all reporting gains. Stock futures are rising, with Dow futures up 275 points, NASDAQ futures ahead by 240, and S&P futures up 35. Gold and silver remain under pressure, both hitting six to seven month lows. Treasuries remain elevated, with 10-year yields at 4.54% and 30-year yields approaching 5.03%.

It's probably a good bet that stocks will take a little breather from the selling, given they've retreated for most of the last week.

Tomorrow's big event will be the SpaceX (SPCX) IPO, which is expected to price at $135 per share, a price set out by the company's prospectus, which has been making the rounds the past few months. There are certain to be more than a few investors eager to get in on Elon Musk's latest foray into markets.

The IPO is expected to launch Friday with expectations high for upside trading of 20% or more being sought.

At the Close, Wednesday, June 10, 2026:
Dow: 49,918.78, -953.33 (-1.87%)
NASDAQ: 25,169.50, -509.32 (-1.98%)
S&P 500: 7,266.99, -119.66 (-1.62%)
NYSE Composite: 23,080.83, -300.27 (-1.28%)