US Stocks Near All-Time High as Inflation Eases

The US stock market is heading towards an all-time high after inflation rates showed a slight decrease. The S&P 500 climbed 0.5% and was on track to top its record set last week, while the Dow Jones Industrial Average was down 47 points or 0.1%. The Nasdaq composite was 0.7% higher.

Oil prices dropped, which helped limit worries about inflation. The price for a barrel of Brent crude oil fell 1.5% to $87.67. The recent volatility in oil prices has been significant, swinging between $72 and $102 last month as hopes rose and fell that a deal in the war could allow oil tankers to freely exit the Middle East again.

The easing inflation rates have traders betting on just a 34% chance that the Federal Reserve will raise interest rates at its next meeting in September. This is down from roughly 50% probability seen two days ago, according to data from CME Group.