July Wholesale Inflation Jumps 3.3%, Shaking Confidence in September Fed Rate Cut
Most U.S. stocks fell Thursday after a report showed wholesale inflation rose 3.3% in July, according to AP. The numbers came in above the 2.5% forecast, raising doubts about a September Federal Reserve rate cut. Seven out of 10 stocks in the S&P 500 declined, though gains in Amazon and other Big Tech names kept the index up. The Dow fell 11 points, and the Nasdaq slipped less than 0.1%. Traders now see a 7.4% chance the Fed holds rates steady, down from full certainty of a cut a day earlier, CME data shows. The Russell 2000 dropped 1.2% as higher yields weighed on smaller companies. Treasury yields climbed, with the 10-year at 4.28%.
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Congress has not passed legislation to authorize such payments and the IRS says no new stimulus checks will be distributed in coming weeks.
