Today's wholesale inflation report revealed a 0.9% rise in the producer price index for July, marking the largest 12-month increase since February. This surge, far exceeding Wall Street's expectations, has raised the annualized PPI inflation rate to 3.3% and diminished prospects for a Federal Reserve interest rate cut in September. Consequently, bond prices are rising and stock prices are falling, with the Vanguard S&P 500 ETF trading lower. Additionally, Cisco Systems beat earnings expectations in its latest report with a profit of $0.99 per share.
The U.S. Bureau of Labor Statistics reports that the producer price index rose 0.9% in July, the biggest 12-month move since February.
PPI inflation is increasing so quickly that the chance the Federal Reserve will lower interest rates in September just got knocked flat.
Short-term bond rates are rising; the 2-year Treasury note increased by 0.6 basis points, while the 1-year note rose by 3 times that amount.
Earnings from S&P 500 companies show Cisco Systems beating earnings expectations with a fiscal Q4 2025 profit of $0.99 per share.
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