Dow Jones slips despite intraday rebound, weighed down by inflation concerns and rate cut uncertainty
NEW YORK: U.S. stocks clawed back from early losses on Thursday, with investors once again buying the dip despite a hotter-than-expected wholesale inflation report that clouded hopes for a near-term Federal Reserve rate cut.
The S&P 500 eked out a third consecutive record close, rising 0.03% to 6,468.54. The Nasdaq Composite slipped 0.01% to 21,710.67, while the Dow Jones Industrial Average shed 11.01 points, or 0.02%, to end at 44,911.26.
Earlier in the session, the S&P and Nasdaq were down 0.4%, and the Dow fell more than 200 points following July’s producer price index (PPI) report, which showed wholesale prices rose 0.9%—far above the 0.2% forecast by economists polled by Dow Jones.
While the spike was largely attributed to gains in portfolio management and airfare, traders remained cautious. “This wasn’t a great PPI print,” said Scott Ladner, CIO at Horizon Investments. “But we’re going to want to see a couple of them before we really think inflation is reaccelerating.”
Despite the inflation surprise, CME’s FedWatch tool showed fed funds futures pricing in a 93% chance of a rate cut in September, down slightly from the day prior. However, expectations for a half-point cut were removed.
The late-session rebound followed a week of optimism after a cooler-than-expected consumer price inflation report, which had lifted the S&P 500 and Nasdaq to fresh highs.
Major Index Performance – Aug 14, 2025
| Index | Close | Change | % Change | Intraday Low |
|---|---|---|---|---|
| S&P 500 | 6,468.54 | +1.94 | +0.03% | -0.4% |
| Nasdaq Composite | 21,710.67 | -2.17 | -0.01% | -0.4% |
| Dow Jones Industrial Avg | 44,911.26 | -11.01 | -0.02% | -200+ pts |
European markets edge higher on geopolitical optimism
European stocks rose as investor sentiment improved amid reports of a potential meeting between U.S. President Donald Trump and Russian President Vladimir Putin to discuss the war in Ukraine.
The pan-European Stoxx 600 gained 0.5%, while Germany’s DAX and France’s CAC 40 each rose 0.8%. The UK’s FTSE 100 edged up 0.1%.