Wall Street’s momentum paused on Thursday as hotter-than-expected wholesale inflation readings soured recent rate-cut optimism. Thursday’s session was indeed marked by shifting expectations for monetary policy and lingering inflation concerns, with the S&P 500 resilient at new highs even as Fed rate cut bets grew more cautious. Investors continue to navigate a crosscurrent of tariff headlines, earnings momentum, and macroeconomic surprises as the summer rally faces its first major test. The S&P 500 eked out a fractional gain, notching a new closing high at 6,468.27 (+0.03%). Meanwhile, the Dow Jones Industrial Average slipped 19 points to close at 44,902.57 (-0.04%), and the Nasdaq Composite drifted down slightly to end at 21,711.34 (-0.01%). The Russell 2000 underperformed, reversing part of yesterday’s rally as traders rotated out of small-caps in response to renewed inflation fears.
Macroeconomic Reports
Thursday’s focus was the Producer Price Index (PPI) for July, which surged 0.9% month-over-month—the largest gain in three years, and well above expectations. The headline PPI reached +3.3% year-over-year, intensifying worries that upstream price pressures could soon hit consumers. Even the core PPI (excluding food, energy, and trade) jumped 0.6% month-over-month. Meanwhile, weekly jobless claims dropped by 3,000 to 224,000, maintaining a stretch of readings below 230,000, which suggests labor market resilience amid inflationary pressures. These reports have muddied the outlook for a September rate cut.
Federal Reserve, Yield Curve & Interest Rates
No new FOMC policy decisions were announced, but Federal Reserve officials maintained a cautious, data-driven approach. The hot PPI print weighed on bond markets, pushing Treasury yields higher and flattening the yield curve. Market pricing based on futures now sees around 57 basis points of total cuts remaining for the year, down sharply from earlier in the week, with a quarter-point cut in September still anticipated but less assured. Fed speakers noted conflicting signals for growth and inflation, warning that persistent service inflation, especially if linked to tariffs, could complicate the path to policy easing. The 2-yr closed rose to 3.7423% and the 10-yr rose to 4.29% today.
Tariff and Trade News
The White House recently extended the 90-day pause on China’s reciprocal tariffs, ensuring China-bound goods remain subject to only a 10% duty until at least November 10, 2025. New tariffs of 25% on certain Indian-origin products are scheduled for August 27, stacking atop existing tariffs. Recent customs rulings also clarified additional duties on gold bullion imports, impacting precious metals traders. The impact of tariffs continues to stoke sector rotation and strategic supply chain moves among blue-chip U.S. firms.
Corporate Headlines & Share Price Movements
NVIDIA (NVDA) shares rose to $182.02 (+0.26%) after securing exemptions for domestic production, allaying investors’ tariff fears and extending its AI-chip momentum.
Tesla (RSLA) shares closed at $335.58(-1.08%) after CEO Elon Musk highlighted next-gen Full Self-Driving advancements. Ongoing debate about the company’s innovation and tariff exposure persists, but AI leadership keeps investors enthusiastic.
Meta Platforms (META)consolidated at $782.13 (+.26%). After recent highs, the stock paused as investors processed both forward guidance and ongoing privacy debates.
McDonald’s (MCD) shares rose a solid 1.27% to $308.95, as a rebound in U.S. same-store sales gave the brand a lift, but analysts remained cautious on further valuation gains.
Oracle (ORCL) edged up .32% to $244.96. Though recent results showed double-digit growth and AI optimism, profit-taking set in after an active quarter.
Palantir Technologies (PLTR) fell 1.82% to close at $181.02.
Rio Tinto Group (RIO) dropped 1.65% to $62.52 after recently announcing a major investment in Australian bauxite, though earnings reflected ongoing tariff and commodity price headwinds.
Bullish (BLSH) IPO: The newly listed crypto exchange extended its wild debut, closing at $74.63 (+9.75%) after an IPO that more than doubled on launch. Enthusiasm for regulated digital asset exchanges remains robust as major institutional investors enter the sector.
Commodities & Cryptocurrencies Closing Prices
- Gold: Declined to $3,382.30/oz as hotter U.S. data lifted the dollar and yields, undercutting hopes for rapid rate cuts.
- Silver: Fell 1.47% to $38.035/oz.
- Crude Oil : jumped 2.04% to close at $63.93/bbl.
- Bitcoin: Traded ~118,395 today after hitting a new-all-time high of $124,090.
