Wall St slips after hotter-than-expected producer inflation data

Live updates

1. 4d ago

   August Consumer Inflation Cements Fed Rate Hike Odds

   Markets react to August inflation data showing the Consumer Price Index rose 0.4% month over month, while core inflation climbed 0.3% against a 0.2% consensus. The CME FedWatch tool indicates the data pushed the probability of a quarter-point Federal Reserve rate increase next week to nearly 86%, up from 72%. Wholesale prices also flashed warnings from factories and farms as investors tracked ongoing shifts in Treasury yields and oil prices.

   Why it matters

   Investors monitor these inflation prints to gauge upcoming central bank monetary policy decisions and adjust risk exposure across equities and commodities. The Federal Reserve must vote on interest rates ahead of its preferred inflation gauge release.

   What is confirmed

   • The August Consumer Price Index rose 0.4% month over month.
   • Core inflation climbed 0.3% compared to the 0.2% consensus.
   • The CME FedWatch tool raised the chances of a quarter-point Federal Reserve rate increase next week to nearly 86% from 72% on Thursday.

   Still unconfirmed

   • Wholesale prices flashed a warning that factories and farms absorb long before grocery receipts show it.

   What to watch next

   • The upcoming Federal Reserve interest rate vote and policy decision next week
   • Further movements in Treasury yields and oil prices
   Sources used for this update (4)

   1. www.cnbc.com — August consumer inflation cements Fed rate hike odds. What Wall Street is saying
   2. finance.biggo.com — August Core Inflation Tops Forecasts, Cementing Case for Fed Rate Hike
   3. www.analyticsinsight.net — Dow, S&P 500, NASDAQ 100 Futures Rise Ahead of CPI, Oracle Rallies, Adobe Slips
   4. 247wallst.com — Wholesale Inflation Came In Hot Again and Here’s What It Means for Your Wallet
   confidence 100%
2. 5d ago

   Wall Street Slips as Hotter Producer Inflation Pushes Up Rates

   Wall Street indexes dropped and Treasury yields climbed following a hotter-than-expected US producer price index report. Wholesale prices rose in August, though individual news reports split on whether the reading matched forecasts or exceeded them. The inflation data coincided with climbing oil prices, sending the 30-year bond yield to a new 19-year high. Markets reacted by scaling back risk exposure, causing Bitcoin to drop, gold to fall more than one percent, and the dollar to edge higher as traders adjusted expectations for upcoming monetary policy decisions.

   Why it matters

   The wholesale inflation figures arrived as markets brace for a Federal Reserve decision complicated by ongoing conflict and persistent price pressures. Chair Kevin Warsh faces a closely watched September 16 meeting where prediction market odds on a rate hike shifted significantly following the inflation release. Stubborn wholesale costs combined with surging oil prices create a challenging backdrop for central bank policymakers trying to balance inflation control against economic growth.

   What is confirmed

   • Wall Street set for lower open after hotter-than-expected producer inflation data.
   • Wholesale prices rose 0.4% in August.
   • The dollar edged higher as data appeared to boost Federal Reserve rate-hike chances.
   • Gold fell more than 1% and oil surged 6%.

   Still unconfirmed

   • Fed rate hike odds rose to 61% after the producer price index came in hotter than expected.

   What to watch next

   • The Federal Reserve policy decision and meeting scheduled for September 16.
   • Further movements in oil prices and Treasury yields.
   Sources used for this update (10)

   1. Reuters — Wall St set for lower open after hotter-than-expected producer inflation data
   2. CNBC — Wholesale prices rose 0.4% in August, as expected
   3. Bloomberg.com — Key Gauge of US Producer Prices Rises Less Than Forecast
   4. www.indiainfoline.com — Gold Price Steadies Near $4,400, Silver Holds Above $66 as Markets Brace for a Fed Decision Complicated by War
   5. Yahoo Finance — PPI data shows wholesale prices advancing in line with expectations
   6. KSL.com — Wholesale prices rise in latest sign of stubborn inflation as oil prices continue to climb
   7. 247wallst.com — Fed Rate Hike Odds Rise to 61% After PPI Comes in Hotter than Expected
   8. www.econotimes.com — America’s Roundup: Dollar edges higher as data appears to boost Fed rate-hike chances, Wall Street dips, Gold falls more than 1%, Oil surges 6%
   9. www.detroitnews.com — Wall Street dips on rising Treasury yields, inflation
   10. cointelegraph.com — Bitcoin falls on US PPI overshoot as 30-year bond yield hits new 19-year high
   confidence 85%