As with any data point the trend is what matters most. Here is TD Setup (blue numbers under red line which is Fed Assets, OHLC bars is $SPX) which is a comparison of current bar to 4 bars prior, there has now been 5 weeks of a decreasing values. This trend will almost certainly continue for some time. Result of course interest rates going higher, equities going lower:
The market is signaling a 0.75% rate hike next week. What's needed is much more than that. But it's an election year.
Powell speaks next week. While the PCE wasn't bad and no wage spiral was showing up last week, there's was a whole lotta stupid shit in this report. Here's what the people who "are going on vacation to wherever they want no matter what the price" is causing: 5's are above the 10's and 30's. 2's should be joining the 5's in doing the same sometime this summer. If you played the "buy the recession, sell the inversion," you were out in April.
Looks like the permabulls thought inflation had peaked yet this report was just like the last few. The Hopium crowd got their hopes dashed. That's the only mentality that explains this outsized drop. I mean who really thought prices went down? You still can't buy any new cars where I live.