US Stocks Hit New Record as Inflation Eases and Oil Prices Fall
The US stock market reached an all-time high on Thursday, driven by declining oil prices and signs that inflation is easing.
The S&P 500 climbed 0.7% to top its previous record set last week, while the Dow Jones Industrial Average added 69 points or 0.1%, and the Nasdaq composite gained 0.8%.
The latest wholesale price index showed a 4.7% increase compared to the same period last year, which is lower than the 5.5% inflation rate in June but still higher than economists' expectations.
The Federal Reserve may consider holding off on interest rate hikes if inflation continues to trend downwards, as higher rates would intentionally slow down the economy and make borrowing more expensive.
Treasury yields sank in the bond market, easing pressure on stocks and other investments. The yield on the 10-year Treasury fell to 4.65% from 4.68% late Wednesday and 4.72% on Monday.