What Happened?

A number of stocks fell in the afternoon session after reports showed that wholesale inflation accelerated more sharply than anticipated in April. 

The Producer Price Index (PPI), which measures inflation at the wholesale level, jumped a seasonally adjusted 1.4% for the month, significantly higher than the 0.5% economists had expected. This data follows a recent Consumer Price Index (CPI) report showing consumer inflation rising at its fastest pace in over three years. These rising prices, particularly for energy, weighed on household budgets, eroding purchasing power. 

Compounding the issue, real wages, which account for inflation, declined for the first time in three years. This combination of higher costs and…