US market today: S&P 500, Nasdaq slip from peaks; Dow down 104 points after hot inflation data

Wall Street retreated from record levels on Thursday after US government data showed wholesale inflation rose more than expected last month, dimming hopes for imminent interest rate cuts.The S&P 500 slipped 0.2% from its all-time high set on Wednesday, while the Dow Jones Industrial Average fell 104 points, or 0.2%, and the Nasdaq composite eased 0.1% from its record in early trading, AP reported.The US Labor Department reported that prices at the wholesale level jumped 3.3% year-on-year in July, sharply higher than economists’ forecast of 2.5%. Analysts warned the increase could signal higher consumer prices ahead as costs filter through the economy.The hotter-than-expected data prompted traders to reassess expectations for a September interest rate cut by the Federal Reserve. CME Group data showed a 5% probability the Fed could keep rates unchanged next month, compared to near-certainty of a cut a day earlier.“This doesn’t slam the door on a September rate cut,” said Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley. “But it may raise a bit of doubt.”The inflation reading came after a more encouraging consumer price update earlier in the week. Separately, weekly jobless claims fell, signalling layoffs remain low despite tighter job openings. A resilient labour market could also give the Fed less incentive to cut rates in the short term.Treasury yields rose after the data, with the 10-year yield climbing to 4.26% from 4.20%.On the corporate front, Tapestry slumped 16.9% after the Coach and Kate Spade parent warned tariffs and duties could shave $160 million off annual profit. The company’s profit outlook missed estimates, even as revenue guidance exceeded expectations. Deere fell 8% after cutting the top end of its full-year profit forecast, citing cautious customer sentiment amid uncertainty.Overseas, stock market performance was mixed across Asia and Europe ahead of Friday’s meeting between US President Donald Trump and Russian President Vladimir Putin.