PPI Surprise Flips the Script as US Futures Stabilize Pre-Market

A sharp PPI reversal just hit the tape. Producer prices rose 1.2 percent year-over-year after three straight negative prints, signaling inflation pressures are reappearing faster than anyone priced in. For US traders preparing for the open, this macro surprise is tightening the fragility curve and reminding everyone that the Fed's holding pattern still carries teeth. On the Iron Condor side, the short put side is seeing downside risk compress as risk assets find bids, while the short call side now looks more capped with upside momentum checking. VixShield's ALVH remains on standby given the unavailable VIX reading, but RSAi is locked in PLACE and HOLD mode with conservative tier caution. Dynamic strike adjustment is active to guard the widened volatility bands from the weekend's softer labor and GDP prints. Watch S&P 500 futures closely for how they digest this heading into today's Fed speeches. That's going to be interesting to watch. Russell's Morning Outlook is right around the corner.