Overview

• U.S. PPI surged 0.9% in July, marking the largest monthly increase since early 2022 and prompting investors to reassess the timing of Fed rate cuts.
• Market-implied odds for a September 25-basis-point Fed cut remain above 90%, but probabilities for subsequent reductions have been trimmed according to CME FedWatch.
• U.S. equities turned mixed after recent record highs as Treasury yields climbed above 4.2%, denting the S&P 500’s and Nasdaq’s gains.
• Berkshire Hathaway’s purchase of 5 million UnitedHealth shares, reports of a potential U.S. government stake in Intel and Bullish’s IPO have fueled volatility in stocks and crypto.
• Investors are monitoring upcoming U.S. retail sales, consumer confidence data and the Trump-Putin Alaska summit for further policy and market cues.