US Stocks Soar to Record High as Inflation Eases and Oil Prices Drop

The US stock market reached an all-time high on Thursday after reports showed inflation is easing. The S&P 500 rose 0.7% and topped its previous record set last week, with the Dow Jones Industrial Average adding 69 points or 0.1%. Oil prices also dropped, helping to limit worries about inflation.

Wholesale price inflation was 4.7% higher in August than a year earlier, which is less painful than June's 5.5% rate but still not ideal. The slight improvement led traders to bet on a lower chance of the Federal Reserve raising interest rates at its next meeting in September.

Lower mortgage rates could also boost activity in the housing market as the average long-term US mortgage rate fell this week for the first time in six weeks. Stocks in the real-estate industry saw some of the biggest gains, with AvalonBay Communities and D.R. Horton rising 2.3% and 2.8%, respectively.