Nasdaq 100: Amazon, Netflix Boost US Stocks While Tariff-Hit Deere Tumbles 8%

Nasdaq Turns Positive as Traders Shrug Off Hot PPI; Materials and Tariff-Sensitive Stocks Slide

Stocks are seeing a mixed session Thursday, 90 minutes after the open, as investors digest hotter-than-expected producer inflation data. The Dow is down 66 points, while the S&P 500 is flat. The Nasdaq is modestly higher, up 0.11%, supported by renewed interest in big tech.

The July Producer Price Index jumped 0.9% month-over-month—well above the 0.2% consensus and marking the steepest monthly gain since June 2022. Year-over-year, wholesale prices rose 3.3% versus the 2.5% estimate. While the headline number stoked inflation concerns, traders largely attributed the surge to one-off categories like portfolio management and airfare, softening the blow to rate-cut expectations.

Will Hot Inflation Delay the Fed’s Rate-Cut Timeline?

Despite the surprise on wholesale prices, rate expectations held steady. Futures markets still show a 92.7% chance of a quarter-point cut at the Fed’s September meeting, down only slightly from 94.3% prior to the data.

However, traders removed all pricing for a 50-basis-point move. The adjustment comes as San Francisco Fed President Mary Daly dismissed the need for aggressive easing, pushing back against Treasury Secretary Scott Bessent’s remarks supporting a half-point cut.

Claims data also showed jobless filings declined last week, adding to signals that the labor market remains resilient—an added complication for dovish policy bets.

Are Tech Stocks Shielding the Market from a Broader Pullback?

Big tech is helping the Nasdaq outperform, with dip-buyers stepping back into megacaps. Netflix leads with a 2.4% gain, followed by Amazon and Microsoft, both trading higher. Nvidia and Qualcomm are also contributing to the bounce. The Nasdaq, which hit a record high on Wednesday, is holding up even as broader market breadth remains weak.

Nine of the 11 S&P sectors are in the red, with materials down 1.27% and real estate off nearly 1%. Energy, industrials, and consumer staples are also under pressure. Only communication services and tech are seeing meaningful gains.

What Are Earnings Saying About Tariff and Inflation Risks?

Tariff concerns and soft guidance are weighing on several key names. Deere shares are down 8% after the company cut its full-year profit outlook, citing weakening demand and pressure from trade costs. Tapestry plunged over 17% after the handbag maker issued a disappointing forecast and flagged similar concerns about tariffs. Cisco is off 1% after delivering a forecast that aligned with expectations but failed to excite.

These results are adding a layer of caution to an already uncertain rate outlook. The inflation surprise, paired with margin pressure from global trade risks, is tempering enthusiasm even as the major averages stay near highs.

Market Outlook: Can Bulls Maintain Momentum in the Face of Mixed Signals?

Today’s market action shows traders are still willing to buy tech on dips, but broader participation is lacking. The combination of strong inflation data, cautious Fed commentary, and earnings warnings from tariff-exposed firms may cap upside in the near term.

With retail sales data due next week and Fed officials—including St. Louis President Alberto Musalem—scheduled to speak later today, traders should expect more rate repricing ahead.

Until then, the market may remain range-bound with strength concentrated in large-cap tech.

More Information in our Economic Calendar.