US Stocks Hit Record High as Inflation Fears Ease

The US stock market reached an all-time high on Thursday following a report that inflation is getting less bad. The S&P 500 climbed 0.7% and topped its prior record, while the Dow Jones Industrial Average added 69 points, or 0.1%, and the Nasdaq composite gained 0.8%. The report showed prices at the US wholesale level were 4.7% higher last month than a year earlier, which is more painful than anyone would like but not as bad as June's 5.5% inflation rate.

The Federal Reserve could decide to hold off on hikes to interest rates if inflation continues to trend this way. Higher rates would help keep a lid on inflation, but they do so by intentionally slowing the economy and making it more expensive for everyone to borrow money.

Treasury yields sank in the bond market, which eases pressure on stocks and other investments. The yield on the 10-year Treasury fell to 4.65% from 4.68% late Wednesday and from 4.72% on Monday, though it's still well above its 3.97% level from before the war with Iran sent oil and gasoline prices surging.