If PPI comes in weak or just inline it would mean that producer are passing on more costs to consumers than they are incurring. Could get a massive rally after today's gut check. Inflation inflates....and it is great until consumers push back and producers start incurring more costs than they can pass on.  I'm not sure we're at the hard pushback phase yet. Gov flooding companies with funds via contracts and they are going out to buy CHIPS, servers, AI services, etc...without really having a rigid cost objective because many of the contracts are cost plus (we weren't allowed to argue with costs unless they completely screwed the pooch on the submission and didn't "gundeck" the numbers like everyone knows how to do to get past a Fed Contracts person).  

I almost got fired (hard to do) once when I was a branch chief and had a fit about a company charging $148,000 for a single "modular server rack"...which they said we needed 8 of. I went to the facility (very very rare...and they didn't like it) and made sure it was what I thought a server rack was. It was a standard rack and called "modular" because you could move the rails to fit different size power supplies (power supply for this application, but it could be moved around to take anything). They said this qualified it for "R&D" and therefore justified the price.  I lost it.  Needless to say, the CEO got wind of me being a pest, called the Admiral, who called the SES I worked for....and I got told to stand down. Eventually, I signed a 1.2 million dollar order for  8 modular server racks with options for 34 more, but did so under protest (sort of...I still gave in and signed it as the branch chief). Soon after that I got a big promotion into acquisition policy.  I'll never know for sure, but I suspect it had a lot to do with me asking to many questions and looking too closely at pricing while in direct operations. In policy, I told people how to do things and what was being done wrong but I was not longer signing contracts directly..and they just ignored the guidance as is standard in Gov offices.  Gov spending wouldn't be that bad if it was spending that was done effectively. I promise, it's not. Gov spending as it's currently done would make the even the most hard core leftist blush.