Rate Hike Bets Abate as Stocks Rise Globally
Stocks rose globally on Thursday as investors scaled back their bets on a U.S. rate hike next month, following unchanged producer price data for July.
The data reduced expectations for a Federal Reserve rate hike in September, with traders now pricing in a 65% probability of the Fed staying on hold next month versus 50% on Wednesday.
The Dow Jones Industrial Average rose 113.90 points, or 0.21%, to 53,884.17, while the S&P 500 climbed to an intraday record high and the Nasdaq Composite surged 235.69 points, or 0.89%, to 26,824.18.
Brent crude futures fell to $86.72 per barrel on signs of lower demand, despite geopolitical tensions in the Strait of Hormuz. Higher commercial crude oil inventories and lower global demand forecasts offset concerns over supply disruptions.