Rate cut hopes gained steam on another strong day on Wall Street, but inflation data and weekly jobless claims could swing sentiment.

Stock futures retreated on Thursday after a report on wholesale-price inflation came in much hotter than expected. The July PPI rose 0.9%, well above economists' expectations for a 0.2% increase. A reading on core-price growth also showed an increase of 0.

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.