S&P 500 Record, Dow and Nasdaq Flat After PPI Inflation Report; Bullish, Nvidia, AMD, More Movers

Make no mistake: The vast majority of S&P 500 stocks closed down on the day. Some larger stocks like Amazon.com and Netflix helped buoy the S&P and Nasdaq.

The major indexes moved sideways all day in the wake of a producer price index that rose at its fastest monthly rate since 2022. The report took a half-point rate cut in September off the table for now, with bets on such a move down from 5.7% on Wednesday to zero after the PPI. Odds of a quarter-point cut are steady at nearly 93%.

The yield on the 2-year Treasury note jumped to 3.74%, its largest one-day jump since July 30, according to Dow Jones Market Data. The 10-year yield was up to 4.29%.

The inflation report was a sign that tariffs are starting to send prices higher, even if the CPI hasn’t yet seen such a spike. The data was also a rebuke of President Doanld Trump’s attacks on Goldman Sachs Chief Economist Jan Hatzius for predicting tariffs would spur higher inflation.

“So, Goldman Sachs was right after all that businesses, for now, are bearing the tariff brunt — given that the headline CPI spiked by +0.2% MoM in July, which was a fraction of the +0.9% PPI surge,” writes Rosenberg Research’s David Rosenberg. “The divergence shows that the cost impact is spreading across the supply chain, and the only question is whether the consumer will be forced to share the burden.”