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U.S. stocks hit record high as wholesale inflation cools and oil eases
The S&P 500 jumped 0.7% to surpass its prior record, while traders cut odds of a September Fed rate hike to 35% after wholesale prices rose 4.7% year over year.
The U.S. stock market climbed to an all time high Thursday after a fresh sign that inflation is worsening less, with traders also pointing to easing oil prices. The S&P 500 rose 0.7% to top its previous record from last week, the Dow added 69 points, or 0.1%, and the Nasdaq Composite gained 0.8%, according to AP.
Prices at the U.S. wholesale level were 4.7% higher last month than a year earlier, improving versus June's 5.5% inflation rate at the wholesale level. While still elevated, the report was slightly better than economists expected, and it followed a similar consumer inflation update the day before.
HousingWire reports that Wall Street reaction also reflected how a continued cooling trend could affect Federal Reserve decisions. Traders trimmed their odds of a rate hike at the Fed's next September meeting to 35%, down from about 50% two days earlier, based on CME Group data.
In bond markets, Treasury yields fell, easing pressure on stocks, AP reports. The 10 year Treasury yield dropped to 4.65% from 4.68% late Wednesday, and oil prices moved lower, with Brent crude down 2.1% to $87.07 per barrel.
Latest closeWTI crude $81.19 ▼2.5%|Brent $86.96 ▼2.3%|S&P 500 7,798.99 ▲0.7%