US Stocks Soar to New Heights as Inflation Eases and Oil Prices Drop
The US stock market set an all-time high on Thursday following positive signs that inflation is easing. The S&P 500 rose 0.7% and surpassed its previous record, while the Dow Jones Industrial Average added 69 points or 0.1%. The Nasdaq composite gained 0.8%. A report showed wholesale prices in the US increased by 4.7% year-over-year, lower than June's 5.5% rate and slightly better than economists expected.
The Federal Reserve may hold off on interest rate hikes if inflation continues to trend downward. Hikes would help curb inflation but slow down the economy and make borrowing more expensive. Fed officials are divided on whether they should have already raised rates, with some now betting on only a 35% chance of a hike at the next meeting in September.
Treasury yields fell in the bond market, easing pressure on stocks and other investments. Oil prices dropped 2.1%, limiting worries about inflation. Stocks in the real-estate industry climbed significantly, with AvalonBay Communities rising 2.3% and D.R. Horton adding 2.8%. Fossil Group surged 5.9% after reporting better-than-expected quarterly results.