With marginal changes after repeated plague changes closed the markers of Wall Street on Thursday (14.08.2025), after publication of a new report on inflation in the US.
Wall Street investors had their attention focused on the recovery of inflation with the report showing that wholesale costs increased more than expected last month, which removes the possibility of a Fed interest rate reduction.
Dow Jones fell marginally 0.02%, the S&P 500 won 0.01%, while Nasdaq fell marginal decrease 0.01%.
Investors entered the meeting with high expectations, with the S&P 500 and Nasdaq recording a new record in the previous meeting. The indicators received a boost earlier this week after the consumer price report, which triggered investors’ hopes to reduce interest rates by the Fed at the end of the monetary policy meeting in September.
However, investors were influenced when the producer price index for July showed that such a reduction in interest rates is not at all certain. Wholesale prices increased by 3.3% on an annual basismuch more than the economists who were asked by Dow Jones expected. The index had remained stable in June. Wholesale prices can be a leading index for consumer prices.
Some investors ignored this percentage of producer prices, as the report showed that the increase was largely due to “portfolio management” and air prices. Without these factors, the data would be much closer to the estimates.
Despite the highest rate of inflation growth, Fed’s future fulfillment contracts valued at about 93% the chances of paying interest rates in September, only slightly lower than the day before, according to CME’s Fedwatch tool. The future fulfillment contracts, however, ruled out any possibility of a reduction by half a point.