Today’s Stock Market Update: S&P 500 Hits New Record as Dow and Nasdaq Stabilize Post-PPI Inflation Report; Key Movers Like Nvidia and AMD Set the Pace!

The S&P 500 just hit a record high, even as Wall Street reacted coolly to rising wholesale prices in July. It climbed slightly, building on a record set the day before. Meanwhile, the Nasdaq took a small dip, and the Dow Jones remained mostly flat, just 11 points down.

Interestingly, most S&P 500 stocks ended the day lower. Bigger players like Amazon and Netflix helped support the S&P and Nasdaq’s gains.

The major indexes didn’t see much movement as a recent report revealed that producer prices rose at the fastest rate since 2022. This news has changed expectations for a half-point rate cut in September; odds of such a move have dropped from 5.7% to zero. However, there’s still a near 93% chance of a quarter-point cut.

In the bond market, the yield on the 2-year Treasury note soared to 3.74%, experiencing its biggest single-day rise since July 30. The 10-year yield also climbed to 4.29%.

These inflation numbers suggest that tariffs are driving prices higher, even if consumer prices haven’t jumped yet. This data challenges claims from President Trump’s administration opposing Goldman Sachs Chief Economist Jan Hatzius, who predicted inflation would rise due to tariffs.

As economist David Rosenberg from Rosenberg Research noted, “Goldman Sachs was right after all that businesses are feeling the tariff impact. The Consumer Price Index (CPI) rose by just +0.2% month-over-month in July, way behind the +0.9% spike in the Producer Price Index (PPI). This gap shows costs are spreading through the supply chain. The big question is whether consumers will eventually feel the impact.”

Wall Street now anticipates more economic data coming out soon, including July retail sales and the University of Michigan’s Consumer Sentiment survey for August. These reports could provide further insights into the economic landscape.

Recent trends on social media show a mix of concern and speculation about how tariffs might affect everyday shoppers. Users are increasingly discussing how these economic changes might hit their wallets. Keeping an eye on these shifts will be essential for both investors and consumers alike.

For further insights into the current economic situation, you might want to check out the U.S. Bureau of Labor Statistics for the latest consumer and producer price data.

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