S&P 500 futures retreated Friday morning after the latest inflation report due this week came in hotter than anticipated. Futures tied to the broad index slipped 0.3%, while Nasdaq 100 futures dropped 0.6%. Dow Jones Industrial Average futures shed 63 points, or 0.2%. July’s producer price index rose 0.3% from the previous month. Economists polled by Dow Jones expected the report, which gauges the prices wholesalers pay for raw goods, to increase 0.2% month over month. The report comes a day after July’s consumer price index came in softer than anticipated on a year-over-year basis. Prices climbed 3.2% on an annual basis, less than the consensus estimate of 3.3%. However, the so-called core CPI, which excludes volatile food and energy costs, rose 4.7% from the prior year. “I think investors in general have just been overly optimistic as we enter this seasonally weak period,” said James Demmert, chief investment officer of Main Street Research. “The print on the CPI, I think, is a reminder: The Fed’s done a lot of this work that needs to be done, but it’s still a bit sticky. So that means rates [are] higher for longer,” he said Thursday on CNBC’s “Closing Bell: Overtime.” Demmert added that there are indications the market may be due for more of a pullback from current levels, noting the market’s retreat from its “big open.” “That’s kind of what corrections look like as you roll through. And I think we’re just a third through this one, so far,” he said. On a weekly basis, the S&P 500 and the Nasdaq are bound for declines of 0.2% and 1.2%, respectively. Both are on pace for their second straight losing week — a first for the tech-heavy Nasdaq since the conclusion of a four-week losing streak in December 2022. The Dow is an outlier of the three major averages, on track for a modest gain of 0.3%. Asia-Pacific markets were mixed on Friday after inflation in the U.S. came in lower than expected, raising hopes markets could see a “soft landing” in the inflation fight. In Asia, Australia’s S&P/ASX 200 was 0.24% lower and ended the day at 7,340.1. South Korea’s Kospi was down 0.4% to close at 2,591.3 and the Kosdaq gained 0.1% to finish at 912.2. Hong Kong’s Hang Seng index slipped 0.79% in its final hour, while stocks on mainland China fell. The CSI300 index was trading 2.3% down, closing at 3,884.25. Japan’s markets are closed for a public holiday. Oil prices fell marginally on Friday as investors weighed optimistic demand forecasts from the OPEC producer group against mixed economic data in top importer China. Brent crude fell 25 cents to $86.15 a barrel, while U.S. West Texas Intermediate crude futures were down 25 cents at $82.57 a barrel. Gold prices held near one-month lows on Friday, shrugging off cooler-than-expected U.S. inflation figures for last month, with bullion staying on course to wrap up its worst week in seven as the U.S. dollar and bond yields stood strong. Spot gold edged 0.3% higher to $1,917.89 per ounce but traded near its lowest level since July 7 touched earlier in the day. U.S. gold futures were steady at $1,950.