Finance

The July U.S. producer price index remained completely unchanged month-over-month, underperforming economist forecasts of a slight increase. This tame inflation metric has prompted market participants to scale back their expectations for a Federal Reserve interest rate hike at the upcoming September meeting.

Brent crude oil futures dropped over 2% to trade around $87 per barrel despite ongoing geopolitical conflicts in the Middle East and the closure of the Strait of Hormuz. Financial markets reacted to revised energy reports indicating lower global demand and rising inventory levels, which helped suppress broader inflation risks.

Shares of Cisco Systems fell over 9% during market trading, significantly weighing down the price-weighted Dow Jones Industrial Average. Although the technology company surpassed expectations for both revenue and profits, investor concern focused heavily on its projected profit margins and broader valuations across the artificial intelligence sector.