US Stocks Hit Record High Amid Slowing Inflation and Easing Oil Prices

The US stock market reached an all-time high on Thursday, driven by easing oil prices and a slowdown in inflation. The S&P 500 climbed 0.7% and surpassed 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 report showing wholesale prices increasing at a slower rate than expected - 4.7% higher last month compared to a year earlier - suggests that inflation may be peaking.

The Federal Reserve's decision on interest rates is now seen as less likely, with traders betting on just a 35% chance of a hike in September, down from 50% two days ago. Lower interest rates would help keep a lid on inflation but also intentionally slow the economy and make borrowing more expensive.

The bond market responded positively to the news, with Treasury yields sinking as investors sought safer assets. Oil prices also eased back, falling 2.1% to $87.07 per barrel of Brent crude oil. This helped limit worries about inflation and allowed stocks in the real-estate industry to climb, as lower interest rates make bonds less attractive.