US Stocks Edge Toward Records as Oil Prices Drop and Inflation Slows

The US stock market is edging closer to an all-time high after recent data showed inflation slowing down. The S&P 500 climbed 0.5% and was on track to top its record set last week, while the Dow Jones Industrial Average was down 47 points, or 0.1%, as of 12:50 p.m. Eastern time.

A report released Thursday showed prices at the US wholesale level were 4.7% higher last month than a year earlier. This is lower than June's 5.5% inflation rate and slightly better than economists expected, which has traders now betting on just a 34% chance that the Federal Reserve will raise interest rates at its next meeting in September.

Treasury yields sank in the bond market, easing pressure on stocks and other investments. The yield on the 10-year Treasury fell to 4.64% from 4.68% late Wednesday and from 4.72% on Monday. Oil prices also eased back, helping to limit worries about inflation.