US Markets
Home›US Markets›Indices›Global equities rise as rate hike bets cool, oil falls…
Global equities rise as rate hike bets cool, oil falls more than 2%
July U.S. producer prices were unchanged, helping shift pricing to a 65% chance the Fed stays on hold in September.
Global equities rose on Thursday as investors pared back expectations for a U.S. rate hike, while oil prices slid more than 2% amid higher inventories and weaker global demand forecasts, according to Reuters. The move came after U.S. producer price data showed no change in July, reducing pressure for the Federal Reserve to tighten policy next month.
U.S. consumer prices were also a key backdrop, with prices rising 3.4% over the 12 months through July, matching economists' expectations, Reuters reported. Traders cut their odds of a September rate hike, pricing in a 65% probability that the Fed will hold on the next decision, up from 50% the previous day.
The rate outlook supported risk assets, with tech stocks helping the S&P 500 reach an intraday record high. Reuters also reported that U.S. Treasury yields extended their decline after the producer price data.
On the day, the Dow Jones Industrial Average gained 0.13% to 53,839.99, the S&P 500 rose 0.65% to 7,798.99, and the Nasdaq Composite climbed 0.81% to 26,803.03. Reuters added that European shares were muted ahead of upcoming euro zone inflation data, and that Asia-Pacific shares outside Japan rose 0.96%, while emerging market stocks increased 0.83% to 1,695.93.
Latest closeS&P 500 7,785.76 ▼0.2%|Nasdaq Comp. 26,729.16 ▼0.3%|Dow Jones 53,732.41 ▼0.2%