US Stocks Soar as Inflation Eases and Oil Prices Decline
US stocks rose to new highs on Thursday as investors welcomed signs that inflation is easing and oil prices declined. The S&P 500 climbed 0.7% and broke its previous record, while the Dow Jones Industrial Average added 69 points, or 0.1%, and the Nasdaq composite gained 0.8%. The Federal Reserve may hold off on interest rate hikes if inflation continues to trend downward.
The latest wholesale price index showed a 4.7% increase from last year, which is less severe than June's 5.5% inflation rate at the wholesale level. This news has traders betting on just a 35% chance that the Fed will raise interest rates in September, down from around 50% two days ago.
The decline in oil prices also helped to alleviate concerns about inflation. The price of Brent crude oil fell 2.1% to $87.07. Stocks in the real-estate industry saw significant gains as lower mortgage rates could boost housing activity.