Wall Street's main indexes declined on Thursday, after a hotter-than-expected producer prices report dampened investor expectations of potential interest-rate cuts by the Federal Reserve this year.

Retail inflation held few surprises in July, with the overall number steady but core inflation, which the Fed watches, continuing a reacceleration that started in March.

Producer prices rose sharply in July, federal data shows, dashing President Donald Trump's hopes that the Federal Reserve would cut rates in September as he has been demanding. Trump believes interest rates are needlessly high and has skirted traditional norms on central bank independence to sharply criticize Fed Chair Jerome Powell and the institution for not slashing borrowing costs,