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- US stocks fell on Friday after the July Producer Price Index showed higher inflation than expected.
- The higher inflation report was driven by services, with prices rising 0.3% in July compared to estimates for 0.2%.
- Friday's PPI report comes one day after the July CPI report showed lower-than-expected consumer inflation.
US stocks edged lower on Friday after the Producer Price Index showed wholesale inflation picked up 0.3% in July, ahead of estimates for a 0.2% rise.
The higher-than-expected inflation report was driven by services and comes just one day after the July CPI report showed cooler-than-expected inflation. Treasury yields moved slightly higher following the data.
Despite the conflicting data, investors still expect the Federal Reserve to pause their interest rate hikes at their September FOMC meeting, according to the CME FedWatch Tool. But that doesn't mean interest rate hikes are over, as the Fed is still awaiting the August CPI and jobs report to inform its decision.
"The increase in wholesale prices serves as a reminder that the data-dependent Fed isn't ready to declare victory on its campaign to quell inflation," LPL's chief global strategist Quincy Krosby said. "Today's report offers the hawkish wing of the Fed more ammunition to advocate for another rate hike before the Fed is convinced it's reached its terminal rate."
Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Friday:
- S&P 500: 4,453.03, down 0.35%
- Dow Jones Industrial Average: 35,139.14, down 0.11% (-37 points)
- Nasdaq Composite: 13,662.08, down 0.54%
Here's what else is going on today:
- Market pundits are growing confident that the Fed is not only done hiking interest rates, but that they could cut rates early next year.
- Apple has bought back more than $500 billion of its stock via buybacks since 2012, more than the worth of Visa, JPMorgan, and Exxon.
- Saudi Arabia is about to send more oil to China, even though it's slashed crude supply levels.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil rose 0.19% to $82.98 a barrel. Brent, the international benchmark, jumped 0.25% to $86.62 a barrel.
- Gold fell 0.03% to $1,948.30 per ounce.
- The yield on the 10-year Treasury bond jumped four basis points to 4.15%.
- Bitcoin fell 0.10% to $29,399.