US Fed Rate Hike | Gold Rate Today | Sensex Today | Stocks to Buy Today: US producer prices increased by the most in 4-1/2 years in September amid rising costs for goods and services, the latest indication of inflation broadening out beyond energy products. This is the biggest rise in American inflation since COVID, fueling the US Fed rate-hike buzz ahead of the US Fed meeting at the end of this month. However, stock market experts believe that it won't have much impact on the Indian stock market, especially the key benchmark indices — Nifty 50, Sensex and the Bank Nifty, as Dalal Street has already discounted the US Fed rate hike up to the December 2026 meeting.
Experts said that US inflation hitting its highest level since COVID is expected to put pressure on the Donald Trump administration and predicted a strong suppression of US bond yields, which is a good sign for the Nifty 50, Sensex, and Bank Nifty indices. They said that the Nifty 50 is on track to reach at least 25,500 by the end of 2026. For gold and silver rates, they predicted ₹1.60 lakh per 10 gm and ₹2.40 lakh per kg, respectively, at the end of 2026.
Decoding the US PPI September 2026 data and the US inflation data, Anuj Gupta, a SEBI-registered market expert, said, “Both US inflation and the US PPI data are negative for the US economy. In fact, their inflation is rising, and their job creation is falling, a sign which may create uncertainty about the US economic condition.”
Anuj Gupta said that the Donald Trump administration can't afford this uncertainty, and hence, he will be left with two choices for the immediate relief: bond yield suppression or additional US dollar printing. As the second one is dangerous for the US dollar, the Trump administration is expected to use administrative tools to contain inflation and US bond yields. He said that a 25 bps US Fed rate hike is already discounted for the October Fed meet.
“Soaring inflation is expected to put pressure on the Trump administration to either contain the US inflation by containing the US Treasury Yields or go for an additional US dollar printing. Both will have a negative impact on the US dollar and the US bond yields. However, it will be good news for the Indian stock market and gold prices,” said Gupta.