US stocks mostly stalled on Thursday as Wall Street digested a much hotter-than-expected PPI inflation print, souring optimism around a large September rate cut. July's Producer Price Index (PPI) came in well above expectations,

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.

The stock market had a strong week despite hot inflation, but with shifts underneath. Amazon jumped on a grocery delivery push.

Markets are facing a crucial reading on U.S. inflation in the coming week, soon after regaining their footing following volatility triggered by a weak jobs report at the start of August.

The S&P 500 dipped 0.3% after flirting with its all-time high, which was set two weeks ago, earlier in the day. The Dow Jones Industrial Average dropped 200 points, or 0.5%, while the Nasdaq composite shaved 0.3% off its own record.

The rally in small-cap stocks fizzled, with investors buying shares of large tech and financial companies.