Wholesale Inflation Surges, Stocks Like Pangaea, AGCO, Array, WillScot Mobile Mini, and Herc Trade Down Amid Rising Costs Concerns.

Stocks like Pangaea, AGCO, Array, WillScot Mobile Mini, and Herc fell in the after-market session due to a sharp rise in wholesale inflation, which fueled concerns about rising costs and their impact on corporate profits. The July 2025 Producer Price Index jumped 0.9%, the most significant monthly increase in over three years, complicating the Federal Reserve's upcoming interest rate decisions. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Stocks like Pangaea, AGCO, Array, WillScot Mobile Mini, and Herc experienced significant declines in the after-market session on July 2, 2025, following a sharp rise in wholesale inflation. The July 2025 Producer Price Index (PPI) jumped 0.9%, marking the most significant monthly increase in over three years [1]. This surge in inflation fueled concerns about rising costs and their potential impact on corporate profits.

The July PPI reading, which was higher than expected, complicates the Federal Reserve's upcoming interest rate decisions. The PPI rose 0.9% month over month and 3.3% year over year, the fastest annual pace since February [1]. This unexpected increase has sparked macroeconomic worries and prompted a wave of derivatives liquidations across crypto markets, including more than $1 billion in positions liquidated over 24 hours [1].

The Federal Reserve's Chairman, Jerome Powell, stated during a recent dialogue that the U.S. economy is strong and that there is no rush to cut interest rates. He emphasized that the Fed will carefully monitor inflation indicators before making any decisions [2]. This stance diverges from the mainstream view, with most economists expecting continued rate cuts next year.

The stock market's overreaction to the inflation news presents an opportunity for investors to buy high-quality stocks at potentially attractive prices. However, it is crucial to remain vigilant and consider the long-term implications of rising inflation and its impact on corporate earnings.

References:
[1] https://www.theblock.co/post/366985/crypto-liquidations-hit-1-billion-after-hotter-than-expected-ppi-inflation-shock
[2] https://www.moomoo.com/news/post/96105179/record-tr4cking-news-buffett-s-berkshire-sparks-unitedhealth-rally-with-new-stake-full