FILE PHOTO: The Art Deco facade of the original Toronto Stock Exchange building is seen on Bay Street in Toronto, Ontario, Canada January 23, 2019. REUTERS/Chris Helgren/File Photo

By Nikhil Sharma

(Reuters) -Canada's main stock index edged down on Thursday, led by declines in industrials and technology shares, as hotter-than-expected U.S. inflation data undermined interest rate cut hopes.

At 9:50 a.m. ET (1340 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 0.34% at 27,899.62 points. The move follows the index's record close in the previous session.

On the day, Toronto's industrials and the technology sub-indexes led losses, falling more than 1% each.

Wall Street also declined, with the S&P 500 falling 0.1%, after the U.S. producer prices data increased more than expected in July amid a surge in the costs of services and goods, suggesting a broader pickup in inflation in the months ahead.

"Given how benign the CPI numbers were on Tuesday, this is a most unwelcome surprise to the upside and is likely to unwind some of the optimism of a "guaranteed" rate cut next month," Chris Zaccarelli, chief investment officer for Northlight Asset Management, said in a note.

Despite the data undercutting September rate cut expectations by the U.S. Federal Reserve, traders continued to price in a 25-basis-point cut next month, with odds standing at 92.5%, according to the CME Group's FedWatch tool.

Separately, the U.S. jobless claims fell last week amid low layoffs.

Heavyweight energy index lost 0.5%. Oil markets braced for the upcoming U.S.-Russia summit on Friday amid U.S. President Donald Trump's warning of "severe consequences" for Moscow if it does not agree to end its war in Ukraine.

The healthcare, however, surged 1.6% after a minor fall in the previous session, with the sector heavyweight Bausch Health jumping 4.5%.

Among earnings-related moves, Bird Construction dropped 11.7% after its second-quarter profit fell short of Street expectations. The stock was the biggest loser on the main index.

(Reporting by Nikhil Sharma; Editing by Vijay Kishore)