I'm LongbridgeAI, I can summarize articles.US August PPI rose 5.4% YoY, exceeding expectations and driving down gold, freight stocks, and equities as yields hit three-year highs. Economists are divided on a September Fed rate hike: RSM's Brusuelas sees it as likely due to unpriced energy costs, while others doubt core inflation supports it. Major losers included Franco-Nevada, FedEx Freight, and semiconductor names.
Gold, precious metals miners and freight stocks took the brunt of Thursday’s hot producer inflation print.
A 24.1% monthly explosion in diesel prices went straight into transportation costs, while a firmer dollar and rising Treasury yields squeezed gold and non-yielding asset across markets.
Shares of Franco-Nevada Corp. (NYSE:FNV) and FedEx Freight Holding Co. (NYSE:FDXF) were among the worst-performing name in the hour following the report among large-cap stocks.
Spot gold – tracked by the SPDR Gold Shares (NYSE:GLD) – fell nearly 2% to around $4,342 an ounce after August Producer Price Index (PPI) came in at 5.4% year-over-year, above the 5.3% consensus, with the monthly rate accelerating to 0.4% from July’s 0.1%.
The dollar index climbed 0.3% to 98.81, and the 10-year Treasury yield pushed to 4.90%, a fresh three-year high.
Equities went with it. By late premarket trading the S&P 500 was down 0.8%, the Nasdaq 100 fell 1.4%, the Dow lost 0.6% and the Russell 2000 dropped 1.0%.
Bitcoin (CRYPTO: BTC) slid 2.0% to $76,800.
The Detail Nobody Priced
RSM chief economist Joseph Brusuelas flagged the point that reframes the entire report: the BLS sampling period only runs through Aug. 11, meaning this print never captured the recent surge in oil, gasoline and diesel prices.
“That means inflation in the wholesale pipeline is going to move higher in September and those gasoline and diesel prices will spread into the core,” Brusuelas wrote on X.
He also noted upward revisions to both topline and core July figures and called the report “supportive of the Fed hiking rates at its September meeting.”
US PPI arrives hot at 0.4% and is up 5.4% from one year ago. Upward revisions to both topline and core in July. Core up 0.2% & 4.6%. Ex food, energy and trade up 0.3% and 4.7% y/y.
— Joseph Brusuelas (@joebrusuelas) September 10, 2026
It's important to note that the sampling period only goes through August 11. That is this report… pic.twitter.com/jTmDE0AQEF
Steno Research founder Andreas Steno Larsen called it a “bad headline, but OK core details,” adding that “core CPI likely to be soft enough to put the September hike in doubt tomorrow.”
Mohamed El-Erian, chief economic adviser at Allianz, focused on the gap between the data and the tape. Noting that monthly PPI and initial jobless claims both matched consensus, he said “the immediate market reaction suggests markets were looking for a softer reading.”
Fed futures currently assign a 66% chance of a 25-basis-point hike at the Federal Open Market Committee (FOMC) meeting next week.
10 Names To Watch On Thursday
According to the Benzinga Pro premarket movers screen:
- Franco-Nevada Corp. shares fell 3.6% to $258.50, the worst large-cap decline on the screen.
- FedEx Freight Holding Co. dropped 3.1% to $124.13, the most direct casualty of the diesel line item.
- Onto Innovation Inc. (NYSE:ONTO) lost 3.2% to $270.15 as long-duration semiconductor names sold off with yields.
- Sterling Infrastructure, Inc. (NASDAQ:STRL) slid 3.0% to $480.03.
- NRG Energy, Inc. (NYSE:NRG) fell 2.8% to $113.50 as higher yields pressured utilities.
- Amcor plc (NYSE:AMCR) declined 2.8% to $43.00, with resin and freight costs feeding straight into packaging margins.
- Strategy Inc. (NASDAQ:MSTR) dropped 2.5% to $127.79, tracking bitcoin lower.
- Stanley Black & Decker, Inc. (NYSE:SWK) lost 2.5% to $90.65 as the housing-linked complex sold off with mortgage rates at 15-month highs.
- Eldorado Gold Corp. (NYSE:EGO) fell 2.4% to $42.73.
- IAMGOLD Corp. (NYSE:IAG) declined 2.2% to $19.55.
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