Rate Hike Bets Down, Stocks Rise Amid Lower Demand for Oil

Stocks rose on Thursday as investors reduced their bets on a US rate hike in September. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite indices all posted gains, with the tech sector leading the way.

The S&P 500 reached an intraday record high after producer price data was released, showing no change in July. This reduced expectations for a rate hike next month, with traders pricing in a 65% probability of the Fed staying on hold versus 50% the previous day.

Brent crude futures fell to $86.72 per barrel, down 2.54%, and US crude dropped 2.7% to $81.02, due to signs of lower demand and higher inventories. The Organization of the Petroleum Exporting Countries lowered its world oil demand growth forecast for 2026.