US Stocks Soar to Record High Amid Easing Inflation Concerns

The US stock market reached an all-time high 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 0.1%. The Nasdaq composite gained 0.8%, driven by easing oil prices and a drop in Treasury yields.

The inflation rate at the US wholesale level was 4.7% higher last month than a year earlier, according to a report. This is lower than June's 5.5% inflation rate and slightly better than economists expected. If inflation continues to trend this way, the Federal Reserve may hold off on interest rate hikes.

The Fed officials are split on whether they should have already begun hiking interest rates. However, traders now bet on a 37% chance that the Fed will raise rates at its next meeting in September, down from the roughly 50% probability seen two days ago.