US PPI came in hot on 12 Oct 2022 - some pre-market gains were lost from this news

From Reuters:

The Labor Department's producer prices index rose 8.5% in the 12 months through September, slightly higher than an estimated 8.4% rise. The reading, however, was lower than the 8.7% increase in August.

PPI MOM is 0.4% higher than 0.2% forecast

As per investing dot com, The Producer Price Index (PPI) measures the change in the price of goods sold by manufacturers. It is a leading indicator of consumer price inflation, which accounts for the majority of overall inflation.

News extract from Reuters 

When PPI news was announced, the pre-market lost some of the earlier gains as per Reuters news above.  PPI is a leading indicator of inflation.  This shows how inflation is affecting producers.  These are likely to be passed on downstream to consumers pending the price elasticity of the products.

This implies that inflation remains persistent and thus, the Fed Reserve is likely to maintain a "hawkish" stand towards the market.  Tomorrow's Consumer Price Index (CPI aka inflation) data will be one of the most watched items for the week.  If it is less than favourable, the Fed is likely to maintain its interest rate hike, expected at 75 basis points.  However, we should not be surprised should the Fed be even more aggressive with 100 basis points.

As such, we can expect the market to remain nervy.  Let us continue to trade with care.  It could be wise to trade "after" the CPI news tomorrow.