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Stocks Shudder As Wholesale Prices Rise Higher Than Expected In July

1. Wholesale prices unexpectedly rose 0.9% in July, surprising economists. 2. Annual increase in wholesale prices reached 3.3%, up from flat in June. 3. Service prices surged, contributing to the largest demand increase since March 2022. 4. Food prices rose 1.4%, affecting overall goods price rise. 5. S&P 500 and Nasdaq initially slipped post-report but remained flat.

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FAQ

Why Bearish?

Rising wholesale prices suggest inflation could persist, impacting S&P 500 valuations negatively, similar to past inflationary periods affecting market confidence and performance.

How important is it?

The unexpected rise in wholesale prices is significant enough to influence investor sentiment and market strategies, underlining inflation's potential to affect broader economic conditions.

Why Short Term?

Immediate market reactions indicate short-term concerns, though prolonged effects depend on Federal Reserve responses to inflation data.

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