Stock Market Today: Dow Futures Slip After Wholesale Inflation Accelerates
Wall Street Journal
Aug. 14, 2025 at 8:50 AM ET
Stock futures slipped after new data showed factory-gate inflation picking up, introducing fresh question marks over coming interest-rate cuts.
The producer-price index showed prices rose by a much stronger-than-expected 0.9% in July.
A day earlier, futures markets suggested investors were highly confident the Federal Reserve would cut rates in September, after Tuesday’s reassuring consumer-price index. Treasury Secretary Scott Bessent had talked up a larger, 0.5 percentage-point cut.
But traders moved early Thursday to pare bets on a September cut slightly, CME Group data showed.
San Francisco Fed President Mary Daly, who favors lowering rates next month, pushed back against the need for a jumbo cut. "I'm worried it would send off an urgency signal that I don't feel about the strength of the labor market," she said.
Chicago Fed President Austan Goolsbee also signaled caution late Wednesday, flagging a jump in some services prices in the CPI report, and saying the labor market remained solid.
Meanwhile, President Trump said he was down to three or four candidates to replace Fed Chair Jerome Powell and said he was likely to make a nomination "a little bit early."
Aug. 14, 2025 at 8:50 AM ET
Stock futures slipped after new data showed factory-gate inflation picking up, introducing fresh question marks over coming interest-rate cuts.
The producer-price index showed prices rose by a much stronger-than-expected 0.9% in July.
A day earlier, futures markets suggested investors were highly confident the Federal Reserve would cut rates in September, after Tuesday’s reassuring consumer-price index. Treasury Secretary Scott Bessent had talked up a larger, 0.5 percentage-point cut.
But traders moved early Thursday to pare bets on a September cut slightly, CME Group data showed.
San Francisco Fed President Mary Daly, who favors lowering rates next month, pushed back against the need for a jumbo cut. "I'm worried it would send off an urgency signal that I don't feel about the strength of the labor market," she said.
Chicago Fed President Austan Goolsbee also signaled caution late Wednesday, flagging a jump in some services prices in the CPI report, and saying the labor market remained solid.
Meanwhile, President Trump said he was down to three or four candidates to replace Fed Chair Jerome Powell and said he was likely to make a nomination "a little bit early."
