Dow Jones futures crash as wholesale inflation soars

Annual core wholesale inflation jumps from 2.6% to 3.7%.
Trump administration tariffs are believed to be the culprit.
Dow Jones futures drop 200 points on inflation reading.

Clay Webster FXStreet

Dow Jones futures slumped an hour before the open on Thursday after the Producer Price Index (PPI) showed rising inflation in the wholesale sector.

The July core PPI, which excludes food and energy, printed at 3.7% YoY, noticeably above the 2.9% consensus and June's 2.6% reading. The clear takeaway is that the Trump administration's tariffs are beginning to filter into wholesale prices after large pre-tariff inventories and multiple tariff delays lose their potency.

President Trump's national-level tariffs went into full effect just last week, but tariffs on steel, aluminum and other industries were already in effect in many cases.

The Dow Jones Industrial Average futures fell from a slight gain near 44,950 to 44,750 after the PPI print. The index was down 0.35% at the time of writing.

The headline PPI of 3.3% YoY also far outstripped consensus of 2.5% and June's 2.4% reading. On a monthly basis, both core and headline PPI rose 0.9% on a monthly basis.

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

AUD/USD falls to near 0.7100 after slipping below 50-day EMA

AUD/USD depreciates after registering minor gains in the previous day, trading around 0.7120 during the Asian hours. The technical analysis of the daily chart shows the pair consolidating sideways within a rectangle pattern, as neither bulls nor bears gain control. The AUD/USD pair is holding a slight bearish tone however as it sits beneath both the nine-day and 50-day EMAs.

160.00: USD/JPY back near intervention territory after upbeat US jobs report

US Nonfarm Payrolls beat expectations by a wide margin in May, with 172K jobs added. The US Dollar rebounds after the release, helping USD/JPY recover from its intraday lows. Warnings from Japanese authorities continue to limit upside potential near the 160.00 threshold.

Gold targets $4,300 amid stronger Dollar

Gold faces increasing selling interest and navigates the area of three-month lows near the $4,300 mark per troy ounce on Friday. The precious metal’s decline comes as traders assess the stronger-than-expected NFP, while the bid bias in the Greenback and higher US Treasury yields also collaborate with the retracement.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano (ADA) price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit.

Week ahead – Fed countdown begins amid US inflation data and geopolitical risks

Fed Chair Warsh’s first meeting approaches as key US inflation data could reshape expectations. Oil prices remain elevated as US-Iran talks continue; tariffs also return to the spotlight. ECB is expected to hike; will it be a one-off move or is July live?

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.