Big Tech steadies Wall Street after inflation surprise

Stocks drift lower on inflation data, but Amazon and other Big Tech names keep major indexes near records.

Big Tech steadies Wall Street after inflation surprise

NEW YORK, AP — U.S. stocks edged lower on Thursday after a wholesale inflation report showed prices running hotter than expected, suggesting higher costs could persist for consumers. Still, gains by Amazon and other large tech companies helped limit losses and kept the S&P 500 near an all-time high.
Seven of 10 stocks in the S&P 500 fell, while the index rose slightly and the Nasdaq and Dow modestly retreated. The 10-year Treasury yield climbed as investors reassessed the Fed’s policy path, with traders pricing in only a slim chance of a rate cut in September.
Tapestry and Deere were among the notable decliners, pressured by tariffs and cautious outlooks, while Fossil Group jumped on stronger profits and a more favorable forecast. Amazon rose, lifting the market given its massive weighting in the S&P 500.
Across Europe and Asia, markets were mixed ahead of a much-anticipated meeting between U.S. and Russian leaders.

The market narrative remains thinly stretched between inflation risks and growth signals. Big Tech’s outsized influence can mask underlying breadth weakness, so a few megacaps leave the broader market looking steadier than it feels. The data flow suggests investors are rethinking the odds of quick Fed rate relief, a shift that could keep borrowing costs higher for longer while inflation cools gradually.
If inflation proves persistent, the Fed could delay rate cuts, which would sustain pressure on some sectors even as consumer demand holds up in areas like labor markets. The next few data releases will test whether the recent resilience is real or just a pause before a more meaningful pullback in risk assets.

Highlights

Markets will keep weighing inflation signals against growth and policy moves.