US stocks closed mostly on Thursday amid hotter-than-expected wholesale inflation data curbed optimism for a large Federal Reserve rate cut in September. The S&P 500 booked marginal gains, rosing for third day, while the Dow and and Nasdaq were muted. July’s Producer Price Index jumped 0.9% month-over-month - the largest increase in three years - and rose 3.3% year-over-year, well above the 0.2% forecast. Despite the inflation surprise, markets still priced in an 85 - 91% likelihood of a September rate cut, though expectations for a 50-basis-point move disappeared. The materials sector led losses, while consumer discretionary stocks struggled to maintain earlier gains. Intel surged 7% Thursday after Bloomberg reported the Trump administration is discussing a potential US government stake in the company. Cisco declined 1% after issuing a cautious outlook despite AI-driven sales growth, and Deere & Co. fell 6.5% following a cut to its full-year earnings forecast amid weaker farm spending.