The Dow, S&P 500, and Nasdaq All Fell 0.4% on Oil and Inflation

U.S. equity indexes each dropped 0.4% as wholesale inflation accelerated to 5.4% year-over-year and crude oil pushed above $105 per barrel. The hotter-than-expected producer price data lifted market-implied odds of a September Fed rate hike to 70%, pressuring rate-sensitive technology names.

NVDA declined alongside other memory chip makers including MU as bond yields climbed on the inflation print. AAPL bucked the selloff, posting gains despite the broader weakness in equities. The divergence underscores rotation dynamics as traders reassess duration exposure ahead of the next policy meeting.

Friday's consumer price index release now takes center stage. A second consecutive upside surprise would cement hawkish expectations and likely extend pressure on growth stocks trading at elevated multiples. Conversely, any cooling in headline or core CPI could trigger a relief rally and pull rate-hike odds back below the 70% threshold.