US Stocks Reach New Record High Despite Inflation Concerns
The US stock market rose to 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 set last week, while the Dow Jones Industrial Average added 69 points, or 0.1%, and the Nasdaq composite gained 0.8%. The easing of oil prices also contributed to the gains, with Brent crude oil falling 2.1% to $87.07.
The inflation report showed that wholesale prices 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%. This has traders now betting on just a 35% chance that the Federal Reserve will raise the federal funds rate at its next meeting in September.
The real-estate industry saw some of the market's bigger gains, with stocks climbing due to lower interest rates and more attractive dividends from investment trusts. Fossil Group also rose 5.9% after reporting better results for the latest quarter than analysts expected.