Most US stocks fall after a disappointing inflation update, but Big Tech
keeps Wall Street steady
[August 15, 2025] By
STAN CHOE AP
NEW YORK (AP) — Most stocks fell on Wall Street Thursday after a
disappointing report said inflation was worse last month at the U.S.
wholesale level than economists expected. But gains for Amazon and some
other influential Big Tech companies helped mask the losses.
Seven out of every 10 stocks within the S&P 500 fell, though the index
edged up by less than 0.1% to set another all-time high. The Dow Jones
Industrial Average dipped 11 points, or less than 0.1%, and the Nasdaq
composite dipped by less than 0.1% from its record set the day before.
The inflation report said that prices jumped 3.3% last month at the U.S.
wholesale level from a year earlier. That was well above the 2.5% rate
that economists had forecast, and it could hint at higher inflation
ahead for U.S. shoppers as it makes its way through the system.
The data forced traders to second guess their widespread consensus that
the Federal Reserve will cut interest rates at its next meeting in
September. Lower rates can boost investment prices and the economy by
making it cheaper for U.S. households and businesses to borrow to buy
houses, cars or equipment, but they also risk worsening inflation.
“This doesn’t slam the door on a September rate cut,” but it may raise
some doubt, according to Chris Larkin, managing director, trading and
investing, at E-Trade from Morgan Stanley.
Traders now see a 7.4% chance that the Fed may hold rates steady in
September, according to data from CME Group. A day earlier, they were
betting on a 100% certainty that the Fed would cut its main rate for the
first time this year.
Higher interest rates drag on all kinds of companies by keeping the cost
to borrow high. They can hurt smaller companies in particular because
they often need to borrow to grow. The Russell 2000 index of smaller
U.S. stocks tumbled a market-leading 1.2%.
Thursday’s disappointing data followed an encouraging update earlier in
the week on prices at the consumer level. A separate report on Thursday,
meanwhile, said fewer U.S. workers applied for unemployment benefits
last week. That’s a good sign for workers, indicating that layoffs
remain relatively low at a time when job openings have become more
difficult to find.
But a solid job market could also give the Fed less reason to cut
interest rates in the short term.
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Trader Ryan Falvey works on the floor of the New York Stock
Exchange, Thursday, Aug. 14, 2025. (AP Photo/Richard Drew)
 The data helped send Treasury yields
higher in the bond market. The yield on the 10-year Treasury climbed
to 4.28% from 4.20% just before the data reports’ release and from
4.24% late Wednesday.
On Wall Street, Tapestry tumbled after the company behind the Coach
and Kate Spade New York brands showed it's feeling the pressure of
tariffs.
It detailed how much profit it could lose in its upcoming fiscal
year because of tariffs and duties, and its forecast for profit fell
short of analysts’ expectations even though its forecast for revenue
came in above. Its stock fell 15.7%, despite it also reporting a
stronger profit for the latest quarter than analysts expected.
Deere fell 6.8% even though the machinery maker likewise delivered a
better profit than expected. There, too, the focus was on where
profits are heading. It cut the top end of its forecasted range for
profit this fiscal year and said its customers “remain cautious amid
ongoing uncertainty.”
On the winning side of Wall Street was Fossil Group, which jumped
29.8% after the seller of watches and other accessories reported
better profit than expected. It also announced a plan to strengthen
its finances, while trimming its forecast for how much it expects
worldwide net sales to fall this year.
Big Tech stocks also helped mask Wall Street’s losses. Amazon rose
2.9% to add to its gains from the prior day when it announced
same-day delivery of fresh groceries in more than 1,000 cities and
towns.
Because Amazon is so huge, with a market value of $2.45 trillion,
the movements for its stock carry much more weight on the S&P 500
than the typical company’s.
All told, the S&P 500 rose 1.96 to 6,468.54 points. The Dow Jones
Industrial Average edged down 11.01 to 44,911.26, and the Nasdaq
composite dipped 2.47 to 21.710.67.
In stock markets abroad, indexes were mixed across Asia and Europe
ahead of a key meeting between U.S. President Donald Trump and
Russian President Vladimir Putin on Friday.
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AP Writers Teresa Cerojano and Matt Ott contributed.
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