US Stocks Hit Record High as Inflation Eases, Oil Prices Drop

The US stock market reached an all-time high on Thursday, driven by signs that inflation is easing and oil prices dropping. The S&P 500 index rose 0.7%, topping its previous record set last week. The Dow Jones Industrial Average added 69 points, or 0.1%, while the Nasdaq composite gained 0.8%. Stocks were boosted by a report showing wholesale price inflation was 4.7% higher than a year earlier, which is less severe than June's 5.5% rate and slightly better than expected.

The Federal Reserve may hold off on interest rate hikes if inflation continues to trend downward. Higher rates would help curb inflation but could slow the economy by making borrowing more expensive. Fed officials are divided on whether to raise rates, with some arguing it should have been done already.

Traders now believe there's only a 35% chance of an interest rate hike at the next meeting in September, down from around 50% two days ago. The yield on the 10-year Treasury fell to 4.65%, easing pressure on stocks and other investments. Oil prices also eased back, limiting worries about inflation.