US Stocks Hit Records Amid Oil Price Risks and Weaker Earnings

US stocks hit new records despite growing risks from oil prices and weaker earnings. The S&P 500 closed at 7,798.99 on Thursday, up 0.65%, while the Nasdaq advanced 0.81% to 26,803.03.

The immediate catalyst was softer US producer-price inflation, which was essentially unchanged from the previous month. This reduced the probability of another near-term Federal Reserve rate hike, with markets now pricing around a 33-35% chance for September, down from approximately 55% a week earlier.

However, two risks are becoming harder to ignore: elevated oil prices and a defensive shift in recent earnings reactions. Brent crude is trading near $87 per barrel, caught between Middle East tensions and weaker demand forecasts.