Markets Flat As Inflation Data Raises Tariff Concerns Ahead Of Jackson Hole

Economic Indicators - The Producer Price Index (PPI) rose significantly, with year-over-year prices increasing by 3.3%, up from 2.4%, and a monthly increase of 0.9% [3] - The Import Price Index increased by 0.4%, surpassing the forecast of 0.1%, indicating potential cost impacts from tariffs on U.S. consumers [4][5] Market Reactions - Equity markets initially sold off following the inflation data, but expectations for a quarter-point rate cut at the next Federal Reserve meeting remain high at over 92% [3] - The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average closed flat, while small-cap stocks fell by 1.3% [2] Corporate Developments - Berkshire Hathaway invested heavily in UnitedHealth Group, purchasing over five million shares valued at $1.6 billion, while also trimming its holdings in Apple by selling twenty million shares [9] - Applied Materials reported earnings that exceeded expectations but lowered its guidance due to an uncertain outlook, particularly regarding China, leading to a projected 15% decline in its shares [9] Upcoming Events - Global economic policymakers will gather in Jackson Hole, Wyoming, with discussions expected to cover interest rate policy among other topics [8]