Nasdaq 100: Tech Stocks Outperform Midday as Inflation Print Hits Dow, S&P Sentiment

Dow Slips While Nasdaq Holds Gains as Hot PPI Cools Fed Cut Hopes

U.S. stocks were mixed mid-session Thursday, as a hotter-than-expected inflation print weighed on sentiment and triggered a pullback in the Dow. The S&P 500 was flat, up just 0.24 points, while the Nasdaq added 22 points. The Dow Jones Industrial Average dropped 116 points, or 0.26%, as traders dialed back expectations for aggressive Fed rate cuts.

Is Inflation Still Cooling or Heating Back Up?

The Producer Price Index rose 0.9% in July from the prior month, more than four times the 0.2% forecast. This report, signaling stronger wholesale pricing pressures, partially reversed the disinflationary tone set earlier in the week by the CPI print.

Treasury yields jumped in response, with the 2-year note rising 5.2 basis points to 3.739% and the 10-year nearing 4.29%. The yield move suggested bond traders were trimming bets on multiple rate cuts.

What Does This Mean for the Fed’s Next Move?

Despite the PPI surprise, fed funds futures still price in a 93% chance of a 25-basis-point cut in September, according to CME’s FedWatch tool. The odds of a 50-point cut, however, have been wiped off the table.

The upcoming Jackson Hole symposium could be critical. Historically, the Federal Reserve has used this platform to recalibrate policy guidance. Traders will watch closely for any signs that Chair Powell could delay or scale down rate reductions.

Which Stocks Are Driving the Market Today?

Miami International Holdings surged more than 43% in its public market debut on the NYSE. The parent of MIAX, an electronic exchange operator, priced its IPO at $23 per share and quickly traded above $31, drawing attention from traders seeking exposure to financial infrastructure plays. The strong performance echoes recent appetite for exchange-related names and suggests investor confidence in the company’s growth potential in a competitive trading landscape.

Another new listing, Bullish, extended its momentum with a 12% gain, adding to Wednesday’s 83% rally after its own debut. The crypto exchange has benefited from renewed interest in digital asset infrastructure stocks, especially as Bitcoin stabilizes above key support.

Tapestry, parent of Coach and Kate Spade, was one of the session’s biggest losers, down 15% after delivering full-year guidance that missed Wall Street’s expectations. Management forecast earnings of $5.30 to $5.45 per share, below the $5.49 analysts were looking for, raising questions about demand resilience in the luxury retail space.

Advance Auto Parts fell over 9% after cutting its 2025 earnings outlook to a range of $1.20 to $2.20 per share, down from $1.50 to $2.50, and warned that tariff-related pressures could intensify in the second half. Ibotta tumbled 32% after Q2 EPS and revenue missed estimates, while Coherent slid 24% despite offering a first-quarter EPS forecast that was roughly in line—guidance for margins and revenue failed to excite investors.

Meanwhile, DLocal jumped 23% after delivering better-than-expected Q2 results and receiving a buy upgrade from HSBC, with analysts highlighting improving cost discipline and new product momentum.

What Should Traders Watch for Next?

Markets remain highly sensitive to inflation data and Fed rate expectations. With Jackson Hole on deck next week, policy signals could drive the next move in yields and equities.

Traders should track incoming economic reports like core PCE and initial jobless claims, which could influence whether the Fed sticks to its easing path or hits pause.

Until then, expect rangebound trading with headline-driven swings.

More Information in our Economic Calendar.