US stocks fell on Thursday as wholesale inflation accelerated by the most in three years, halting a risk-on rally that helped set fresh record highs.

Wall Street is retreating from its record heights after a disappointing report said inflation was worse last month at the U.S. wholesale level than economists expected. The S&P 500 fell 0.4% in early trading Thursday.

U.S. stocks opened lower on Thursday after a reading on the July producer-price index came in much hotter than economists had expected. Although some pointed out that much of the increase was driven by services inflation,