Stocks Fall for First Time in 3 Days Amid Inflation Data

Aug 14, 2025 - 17:00
Stocks Fall for First Time in 3 Days Amid Inflation Data

Stocks slipped on Thursday after a new inflation report showed that wholesale costs rose more than expected last month.
The Dow Jones Industrial Average backtracked 140.71 points to 44,781.48.

The S&P 500 index faded 10.65 points to 6,455.93.

The NASDAQ dropped 27.93 points to 21,685.21.

Tapestry, the Coach New York and Kate Spade parent, sank more than 10% after its full-year outlook missed analyst estimates. Tapestry forecast full-year earnings of $5.30 to $5.45 per share, while analysts polled by FactSet were looking for $5.49.

Deere shares dropped about 6% after it trimmed the top end of its full-year outlook. The Moline, Illinois-based manufacturer forecast net income of $4.75 billion to $5.25 billion, versus a previous forecast of $4.75 billion to $5.50 billion.

Investors came into the session riding high, with the S&P 500 and NASDAQ posting fresh record highs in the previous session. The benchmarks got a jolt earlier this week after the release of a cooler-than-expected consumer price inflation report for July.

That report stoked hopes among investors for a rate cut from the Federal Reserve at the end of its September policy meeting.

However, investors were left feeling disappointed after July’s producer price index reading indicated that such a rate cut is far from guaranteed.

Wholesale prices rose 0.9% on the month, much more than the 0.2% economists polled by Dow Jones were expecting. The index had come in flat in June. Wholesale prices can be a leading indicator for consumer prices.

Some traders were looking past this PPI number because the report showed the increase was driven by a large gain in “portfolio management,” along with airfare. Without those factors the figures would have been much closer to estimates.

Prices for 10-year Treasury lost ground Thursday, raising yields to 4.30% from Wednesday’s 4.24%. Treasury prices and yields move in opposite directions.

Oil prices took on $1.06 to $63.71 U.S. a barrel.

Gold prices collapsed $21.00 to $3,387.90 U.S. an ounce.