The S&P 500 Index rose +0.09%, Dow Jones fell -0.02%, and Nasdaq 100 was unchanged. September E-mini S&P futures fell -0.08%, while E-mini Nasdaq futures fell -0.24%. Stocks closed narrowly mixed, with pressure from the strong US PPI report, rising 10-year T-note yield, and Fed officials casting doubt on a -50 bp rate cut.

The July US final-demand PPI report was much stronger than expected, with +0.9% m/m and +3.3% y/y. Core final-demand PPI was +0.9% m/m and +3.7% y/y. Markets adjusted expectations for Fed easing, now seeing a 93% chance of a -25 bp rate cut in September. Initial unemployment claims fell slightly, showing a solid labor market.

Fed officials Daly and Musalem oppose a -50 bp rate cut in September. Treasury Secretary Bessent clarified his earlier comments, saying he wasn’t calling for a series of rate cuts. Trump extends tariff truce with China, imposes 100% tariff on semiconductors, and doubles tariff on Indian imports. Average US tariff to rise to 15.2%.

Focus remains on tariff-trade news and Trump-Putin summit. Retail sales, industrial production, and consumer sentiment data expected on Friday. Earnings reports show S&P 500 Q2 earnings on track to rise +9.1% y/y. Overseas markets closed mixed. Interest rates rose, with T-note prices falling back on strong PPI report.

European government bond yields rose. Swaps see 7% chance of -25 bp rate cut by ECB in September. Stock movers included Amazon (+2.9%) and Tesla (-1.1%). Chip stocks mixed, Bitcoin fell nearly -4%. Cisco (-1.5%) and Deere (-6.8%) closed lower, while Dow Inc rose +2%. NetEase fell nearly -4%, CVS Health rose +2.4%.

Earnings reports on 8/15 from Dillard’s Inc, SailPoint Inc, and Flowers Foods Inc. Barchart author Rich Asplund did not have positions in securities mentioned. Views and opinions expressed are of the author and not Nasdaq, Inc.

Read more at Nasdaq: Stocks Close Mixed After Hot PPI Report