Wall Street didn't take kindly to this morning's hotter-than-expected producer inflation report.
- IBIT ETF is moving fast. Check live prices here.
Both headline and core readings logged their biggest monthly gains in roughly three years, showing that President Donald Trump's tariffs are starting to influence prices in the economy.
The headline PPI jumped 0.9% month-over-month in July, lifting the annual rate to 3.3% and topping all forecasts.
Core PPI surged 0.9% in July, its steepest rise since March 2022, driving the annual pace to 3.7% versus expectations for 2.9%.
Prices for services purchased by businesses jumped 1.1% in July, the biggest monthly increase in more than two years.
Most of that came from higher profit margins for wholesalers and retailers, especially those selling machinery and equipment, which rose 3.8%.
On the goods side, prices rose 0.7%, led by a 1.4% jump in food costs. Fresh and dry vegetables soared nearly 39%, while diesel fuel, jet fuel, meats, and eggs also became more expensive.
Gasoline was one of the few items to get cheaper, falling 1.8%.
Risk Sentiment Drops: Is The Rally Over?
Wall Street has enjoyed a four-month rally, driving equity indices and major cryptocurrencies to record highs by mid-August. Yet, the hotter-than-expected data is now producing selling pressure across risk assets.
By 9:00, Futures on the S&P 500 were down 0.4%, Nasdaq 100 futures sliding 0.5% and Dow futures off 0.3%.
Bitcoin (CRYPTO: BTC) tumbled 4% after hitting record highs above $123,000, on pace for its worst session since April.
According to Benzinga Pro, these large-cap stocks – with a market cap north of $50 billion – were the biggest losers 30 minutes after the data hit:
| Company | % Chg |
|---|---|
| Marvell Technology Inc. (MRVL) | -2.66% |
| Coinbase Global Inc. (COIN) | -2.49% |
| CoreWeave Inc. (CORE) | -2.40% |
| Robinhood Markets Inc. (HOOD) | -1.97% |
| AppLovin Corp. (APP) | -1.78% |
| Palantir Technologies Inc. (PLTR) | -1.56% |
| Strategy Inc. (STRA) | -1.53% |
| Lam Research Corp. (LRCX) | -1.41% |
| Arm Holdings plc (ARM) | -1.41% |
| Arista Networks Inc. (ANET) | -1.38% |
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