Stocks ended mixed Wednesday with the S&P 500 setting a new closing high after news of a surprising decline in producer prices. The Dow Jones industrial average dipped by 0.5 percent, the S&P 500 firmed 0.3 percent, and the Nasdaq was flat. US Treasury yields declined while the dollar and oil prices rose.

Stocks got an early lift from news that PPI-FD dropped by 0.1 percent in August, below the expected 0.3 percent increase, which bolstered market hopes for interest rate cuts. Apple shares weakened on an underwhelming iPhone unveiling, to depress the Dow, but other tech stocks including Oracle and AI shares, fared better.

Investors saw the PPI-FD report as a harbinger of good inflation news in the consumer price index report due on Thursday, where expectations call for a similar 0.3 percent increase in total and core CPI on the month.

Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.

Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.