PPI Report: Wall Street Awaits Wholesale Inflation Data For Further Cues On Fed’s Rate Path Ahead

Wall Street is waiting for the release of producer price index (PPI) data on Thursday for cues on the interest rate path ahead for the Federal Reserve.

The Bureau of Labor Statistics (BLS) is set to release the PPI report for July on Thursday. According to Morningstar, PPI is expected to rise 0.2% in July on a monthly basis, after remaining unchanged in June.

The wholesale inflation report will come days after the consumer price index (CPI) report, which showed that retail inflation edged up to 2.7% annually in July, softer than what analysts expected. The producer price index is a gauge of prices that producers get for their goods and services in the open market.

Earlier on Monday, analysts at Goldman Sachs said they expect products impacted by President Donald Trump’s tariffs to start contributing to the increase in inflation. However, PPI data for June showed tariffs only took a marginal bite on the broader U.S. economy, with wholesale inflation coming in flat while analysts expected a 0.2% increase during the month.

Earlier on Wednesday, Treasury Secretary Scott Bessent said he believes interest rates could be lower by 150 to 175 basis points, from the existing range of 4.25% to 4.5%.

Data from CME Group’s FedWatch tool points to a 99.9% probability of the central bank cutting interest rates by 25 basis points in September.

Meanwhile, U.S. equities gained in Wednesday’s morning session. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up 0.51%, while the Invesco QQQ Trust (QQQ) gained 0.46%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘neutral’ territory.

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