US stocks were mixed after producer price index (PPI) data came in higher than expected, dampening hopes for a potential interest rate cut.
The Labor Department's report showed the PPI price index rose by its highest in three years in July, supported by a surge in the cost of goods and services, signaling a sharp rise in inflation.
According to LSEG data, traders have cut expectations for a Fed rate cut this year to 56.7 basis points from 63 basis points previously.
The latest data showed a weak labor market and a modest increase in the consumer price index (CPI) have reinforced expectations that the central bank is likely to cut interest rates next month.
Federal Reserve (Fed) President of St. Louis Alberto Musalem also described the half-point rate cut for the Fed's September meeting as inappropriate.
The Dow Jones Industrial Average fell 0.02% to 11.01 points, the technology-focused Nasdaq fell 0.01% to 2.47 points, while the S&P 500 rose 0.03% to 1.96 points.
Meanwhile, Intel Corp shares rose 7.4% after Bloomberg News reported that the Donald Trump administration was in talks with the company about possible US involvement.
Cisco Systems shares fell 1.6% after widespread online speculation failed to interest investors.
In the geopolitical arena, attention was also focused on a meeting between Trump and Russian President Vladimir Putin as Trump sought to end the Russia-Ukraine war.
Trading volume on US exchanges recorded $16.3 billion compared to an average of $18.3 billion over the full 20 trading days.
