Wall Street slips as rate-cut bets waver on hot producer inflation data

• Indexes down: Dow 0.22%, S&P 500 0.05%, Nasdaq 0.01%
• Producer inflation rises more than expected in July
• Markets reduce Fed rate-cut expectations for 2025
• Deere, Tapestry flag strains from US tariffs

Wall Street’s main indexes eased on Thursday, after a hotter-than-expected producer prices report dampened investor expectations of potential interest-rate cuts by the Federal Reserve this year.

A Labor Department report showed producer prices increased the most in three years in July due to a surge in the costs of goods and services, suggesting a broad pickup in inflation was imminent.