US Stocks Soar to Records Amid Slowing Inflation and Lower Oil Prices

The US stock market continued its upward trend on Thursday, with major indexes hitting new records. The S&P 500 climbed 0.7% to top 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%. The rally was driven by a decline in oil prices and a report showing inflation at the wholesale level had slowed to 4.7%.

Traders are now betting on just a 35% chance that the Federal Reserve will raise interest rates at its next meeting in September, down from roughly 50% probability seen two days ago. A rate hike would be the first in more than three years and could anger President Donald Trump, who has been lobbying for lower interest rates.

Stocks in the real-estate industry led the gains, with AvalonBay Communities rising 2.3% and Homebuilder D.R. Horton adding 2.8%. Fossil Group climbed 5.9% after reporting better-than-expected results for the latest quarter.