NEW YORK (AP) — 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. The Dow Jones Industrial Average was down 149 points, and the Nasdaq composite was down 0.3%. The hotter-than-expected inflation report forced traders to second guess the widespread consensus that the Federal Reserve will deliver some relief next month by cutting interest rates. Tapestry, the company behind Coach and Kate Spade New York, fell after saying tariffs could take a big bite out of its profits.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

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