US Stocks Soar to All-Time High as Inflation Worries Ease
US stocks rose to an all-time high on Thursday following the latest sign 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%. A report showed prices at the US wholesale level were 4.7% higher last month than a year earlier, which is 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 that 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. Fed officials are split on whether they should have already begun hiking interest rates.
The report also had an impact on oil prices, which eased back on Thursday. The price for a barrel of Brent crude oil fell 2.1% to $87.07. This helped to limit worries about inflation and ease pressure on stocks and other investments.