S&P 500 and Nasdaq 100 futures fell to premarket lows after the release of the US Producer Price Index (PPI) for June, which indicated a higher-than-anticipated increase in prices.
The US Bureau of Labor Statistics (BLS) announced that the PPI, excluding food and energy, rose by 3.0% year-over-year against an estimated 2.5%, and by 0.4% month-over-month compared to the 0.2% forecast.
The data also showed that US producer prices in June increased by 0.2% month-over-month, which was above the expected 0.1% rise.
This suggests that inflationary pressures remain persistent, as businesses are experiencing higher costs for goods and services, which may eventually be passed on to consumers.
In a broader context, the overall producer prices in the US rose by 2.6% year-over-year, above the consensus of +2.3% .
The BLS also noted that the final demand producer prices in May showed no change.