S&P 500 Margins at Risk as Producer Costs Outrun Consumer Prices

Corporate America’s effort to boost margins and sustain US stock gains faces a key hurdle: a widening gap between consumer and producer prices, compounded by tariff uncertainties.

Prices paid to US producers surged in July by the most in three years, adding to signs that inflation may remain higher for longer. The report indicates companies are adjusting the price of goods and services to help offset costs associated with higher US tariffs, despite softening demand in the first half of the year. Separate data on Tuesday showed consumer prices accelerated in July, though the cost of tariff-exposed goods didn’t rise ...