The Core PPI is a key indicator of inflation, excluding volatile food and energy prices. A higher than expected PPI suggests increasing production costs that could lead to higher consumer prices, influencing inflation expectations. This, in turn, may affect the Federal Reserve's monetary policy decisions, particularly regarding interest rates. Changes in interest rates can influence the stock market, and as SPY is a broad market ETF, it is likely to be impacted by these macroeconomic changes. However, the exact direction of the impact (positive or negative) on SPY's price in the short term is uncertain, as it depends on various factors including market sentiment, the Fed's actual decisions, and other economic indicators.