Markets slip after hot PPI data

Markets pull back after a hotter than expected PPI reading, setting the tone for the week ahead.

Markets Slip After Hot PPI Data as Nvidia Leads Moves

The Dow Jones Industrial Average fell about 180 points, or 0.4%, while the S&P 500 and Nasdaq slipped 0.3% as traders digested July's producer price index report, which came in hotter than expected. Market breadth remained weak, with roughly 100 stocks in the S&P 500 on track to close higher and the equal-weight index down about 0.9%. Nvidia and AMD were among the notable movers, signaling a rotation within tech rather than a broad market rally.
The PPI print pushed back expectations for a near term rate cut and raised questions about inflation persistence into late summer. Traders now weigh how the data will influence the Fed's meeting in September and whether August inflation data can still cool enough to change the trajectory. With a stream of economic releases ahead, investors are trying to identify a catalyst that can propel the market beyond a string of record closes.

Inflation data remains the stubborn hinge on policy expectations, and this PPI report underscores why the Fed is in no rush to ease. A hotter figure complicates the case for a swift rate cut and keeps investors cautious about the pace of any seasonal recovery.
Beyond the headline numbers, the market’s leadership appears narrow. A few big names are steering moves while breadth stays weak. If that pattern persists, rallies may be fragile even as traders scan for a clear signal from upcoming data and the central bank. The week ahead will test whether today’s soft patch is a pause or a shift in trend.

Highlights

The market will keep reacting to data and the Fed path as new numbers arrive.