Earlier this week, falling bond yields and growing expectations for aggressive Federal Reserve interest-rate cuts in the months ahead helped spark a rotation away from what had been working in the U.S.

US stocks fell on Thursday as wholesale inflation accelerated by the most in three years, halting a risk-on rally that helped set fresh record highs.

U.S. stock index futures slipped on Thursday after hotter-than-expected producer prices data contrasted with recent tame consumer prices data that had boosted bets of Federal Reserve interest rate cuts this year.

The producer price index for July suggests companies may be feeling the sting of inflation and consumers could be next.

The report issued Thursday, known as the producer-price index, is volatile, and many analysts look to it more as a gut check on the inner gears of commerce than as one of the economy’s primary vital signs.

A jump in wholesale prices is likely to bolster concerns among Federal Reserve policymakers that rising inflation remains a risk, intensifying debate over the wisdom of a rate cut at their September meeting and leaving the tension between the U.

Treasuries moved lower after a reading of inflation at the production level came in stronger than expected, prompting traders to pare bets the Federal Reserve will cut interest rates next month.