I would favour holding QQQ while selectively adding broader SPY exposure, rather than making a full rotation into value.

The 1.3% PPI jump is a warning because persistent input-cost inflation can squeeze margins and keep rates higher for longer, which is particularly challenging for richly valued growth stocks. But one hot inflation print alone does not invalidate the long-term AI and tech earnings story.

SPY’s broader participation is actually healthy if financials and consumer sectors can contribute while tech consolidates. I would avoid chasing either side after a single data point.

The key signals now are inflation expectations, Treasury yields and whether higher producer costs begin feeding into CPI and corporate margins. If those pressures persist, value has the advantage. If they cool, QQQ could regain leadership.

My positioning: hold QQQ, diversify through SPY, and keep some cash ready rather than aggressively rotating.