Equity markets stumbled on Wednesday morning following a mixed PPI report. The Producer Price Index came in hotter than expected at the headline level, showing another acceleration. The monthly gain led to a 2.2% increase compared to last year, the hottest read in months. The core readings were cooler than expected but will likely rise soon. However, the risk for the market comes today with the release of the CPI. Hot CPI data should reinforce the idea that the FOMC will hike rates again this year, but the impact on markets is uncertain.

The S&P 500 continues to defy all logic and closed Wednesday's session with a gain. The combination of hot PPI and Fed minutes did little to stymy bulls, who sent the index up another 0.4% at the end of the session. The move extends the rebound to a 6th day, and a retest of recent highs looks likely. With the earnings season slated to begin on Friday, it is possible the S&P 500 could move up to retest the 2023 highs and possibly set a new high.