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Wholesale prices rose 0.9% in July, much more than expected

1. Wholesale prices surged 0.9% in July, surpassing forecasts significantly. 2. Core PPI rose 0.9%, well above the predicted 0.3% increase. 3. Annual headline PPI jumped 3.3%, exceeding the Fed's 2% target. 4. Stock market futures fell post-report; bond yields increased. 5. BLS data integrity concerns could impact future economic assessments.

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FAQ

Why Bearish?

The unexpected rise in PPI indicates persistent inflation, reducing Fed rate cut chances. Historically, similar inflationary pressures have led to market pullbacks.

How important is it?

Surprise inflation data influences investor sentiment and Fed actions, directly impacting S&P 500.

Why Short Term?

Immediate market reactions are likely as investors reassess Fed policy. Past instances show quick responses from the market after inflation data is released.

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