S&P 500 closes flat, Nasdaq dips as market comeback rally eases

US Stocks struggled for direction on Thursday as investors mulled another better-than-expected inflation report.

The S&P 500 closed down less than 0.1%, while the Nasdaq Composite slumped 0.6%. The Dow nudged upward by 28 points, or less than 0.1%. The three major averages opened the session higher but lost steam as the day progressed.

Investors received better economic news when the July producer price index showed a surprise decline from June. PPI dropped 0.5%, compared with an estimate of a 0.2% gain, according to a Dow Jones survey. The PPI reading excluding food and energy rose less than expected.

That reading follows an encouraging consumer price index for July on Wednesday. CPI came in at 8.5%, slightly cooler than the 8.7% expected by analysts surveyed by Dow Jones and a slowing pace from the prior month. Stocks rallied after Wednesday’s report and again Thursday morning, but the uptrend waned later in the day.