Markets Rise as Fed Rate Hike Bets Fall

Global equities rose on Thursday as investors pared back U.S. rate hike bets following producer price data that was unchanged in July.

The data reduced expectations for a Federal Reserve rate hike next month, with traders scaling back their bets to a 65 per cent probability of the Fed staying on hold.

U.S. tech stocks powered the S&P 500 to an intraday record high, while gold prices fell and U.S. Treasury yields extended their decline.

The Dow Jones Industrial Average fell 3.55 points to 53,766.72, but was still up for the week.

Brent crude futures dropped 1.48 per cent to $87.66 per barrel as commercial crude oil inventories posted their largest weekly gain since January 2023 and the Organization of the Petroleum Exporting Countries lowered its world oil demand growth forecast for 2026.