Key events in Global Markets

U.S. Producer Prices Unexpectedly Edge Slightly Lower In August

Largely reflecting a sharp pullback in prices for trade services, the Labor Department released a report on Wednesday unexpectedly showing a modest decrease by U.S. producer prices in month of August. The Labor Department said its producer price index for final demand edged down by 0.1 percent in August after climbing by a downwardly revised 0.7 percent in July. The dip surprised economists, who had expected producer prices to rise by 0.3 percent compared to the 0.9 percent jump originally reported for the previous month.UK Retail Sales Growth Accelerates: BRC

U.S. Wholesale Inventories Inch Up 0.1% In July, Slightly Less Than Expected

Wholesale inventories in the U.S. increased slightly less than expected in the month of July, according to a report released by the Commerce Department on Wednesday. The Commerce Department said wholesale inventories crept up by 0.1 percent in July after rising by an upwardly revised 0.2 percent in June.

China Falls Back Into Deflation; PPI Continues To Decline

China’s consumer prices declined more than expected in August on weaker demand and producer prices continued to fall, strengthening calls for more actions to bolster domestic consumption amid slowing exports growth. The consumer price index dropped 0.4 percent from a year ago after remaining flat in July, the National Bureau of Statistics reported Wednesday. Prices were expected to fall 0.2 percent. By contrast, core inflation that excludes prices of food and energy, rose to 0.9 percent in August, the fastest in more than two years, from 0.8 percent in July

US Small Cap Underperformance Continues

Small-cap stocks, as measured by the Russell 2000 index, are in their longest slump without a new record since the dot-com bubble of the early 2000s. The Russell 2000 has not reached an all-time high in over 950 days, while the S&P 500 has seen 19 new highs in 2025 alone.

The primary reason for this underperformance is the Russell 2000’s heavy concentration in sectors like regional banks, industrials, and small- and medium-sized enterprises (SMEs). These companies are more sensitive to rising interest rates and tighter financing conditions, which have been a result of the Federal Reserve’s monetary tightening policies.

The future performance of the Russell 2000 is closely tied to the “big tech” companies that dominate the S&P 500, such as Nvidia, Amazon, and Apple. If these tech giants maintain their high valuations, it could trigger a rotation, a shift of investor capital, from large-cap to small-cap stocks in search of better value.

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