Inflation Eases, Stocks Surge to Record High
The US stock market reached an all-time high on Thursday following a report that inflation is slowing down. The S&P 500 climbed 0.7% to top its prior record set last week, while the Dow Jones Industrial Average added 69 points and the Nasdaq composite gained 0.8%. The better-than-expected inflation numbers were also influenced by easing oil prices, which have been volatile in recent months.
The wholesale price index rose 4.7% year-over-year, a decrease from June's 5.5% rate. This may prompt the Federal Reserve to hold off on raising interest rates, which would help keep inflation in check but slow down the economy. Fed officials are divided on whether to increase rates, and traders now estimate only a 35% chance of a rate hike at the next meeting.
The real estate sector saw significant gains, with stocks like AvalonBay Communities and D.R. Horton rising by 2.3% and 2.8%, respectively. This may be due to lower mortgage rates making homes more affordable. However, Cisco Systems fell 8.4% despite reporting stronger profits and revenue.