Traders work on the floor of the New York Stock Exchange (NYSE) on August 12, 2025 in New York City. <\/p>\n
Spencer Platt | Getty Images News | Getty Images<\/p>\n
Stocks slipped on Thursday after a new inflation report showed that wholesale costs rose more than expected last month<\/p>\n
The Dow Jones Industrial Average<\/a> lost 200 points, or about 0.5%. The S&P 500<\/a> shed 0.4%, while the Nasdaq Composite<\/a> slid 0.3%.<\/p>\n Investors came into the session riding high, with the S&P 500 and Nasdaq posting fresh record highs in the previous session. The benchmarks got a jolt earlier this week after the release of a cooler-than-expected consumer price inflation report<\/a> for July. That report stoked hopes among investors for a rate cut from the Federal Reserve at the end of its September policy meeting.<\/p>\n However, investors were left feeling disappointed after July’s producer price index reading<\/a> indicated that such a rate cut is far from guaranteed. Wholesale prices rose 0.9% on the month, much more than the 0.2% economists polled by Dow Jones were expecting. The index had come in flat in June<\/a>. Wholesale prices can be a leading indicator for consumer prices.<\/p>\n Some traders were looking past this PPI number because the report showed the increase was driven by a large gain in “portfolio management,” along with airfare. Without those factors the figures would have been much closer to estimates.<\/p>\n Despite the higher inflation number, fed funds futures were pricing in about 93% odds of a rate cut in September, only slightly lower from the day prior, according to the CME’s FedWatch tool<\/a>. The futures, however, did remove any chance of a half-point cut.<\/p>\n Tech shares like AMD<\/a> and Nvidia<\/a> that have led the bull market turned lower following the hot inflation numbers. <\/p>\n Shares of Cisco<\/a> fell 1% on the heels of the major tech company’s fourth-quarter results<\/a> narrowly beating expectations. The company’s outlook was about in in line with expectations. Deere<\/a> shares lost 7% on mixed full-year guidance.<\/p>\n","protected":false},"excerpt":{"rendered":"Traders work on the floor of the New York Stock Exchange (NYSE) on August 12, 2025 in New…\n","protected":false},"author":2,"featured_media":67735,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[23645,64,63,1053,99,174,24207,52338,1068,1062,5058,171,1066,1061,5063,1067,1063,1054,53799,1055,53800],"class_list":["post-67734","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-advanced-micro-devices-inc","tag-au","tag-australia","tag-breaking-news-markets","tag-business","tag-business-news","tag-cisco-systems-inc","tag-deere-co","tag-dow-jones-fut-mar23","tag-dow-jones-industrial-average","tag-jpmorgan-chase-co","tag-markets","tag-nasdaq-100-fut-mar23","tag-nasdaq-composite","tag-nvidia-corp","tag-sp-500-fut-mar23","tag-sp-500-index","tag-stock-markets","tag-tapestry-inc","tag-united-states","tag-wells-fargo-co"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/67734","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=67734"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/67734\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/67735"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=67734"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=67734"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=67734"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}