US Stocks Surge as Inflation Data Declines and Oil Prices Ease

The US stock market is poised to break new records as inflation data shows a decline in wholesale prices. The S&P 500 climbed 0.6% on Thursday, putting it on track to surpass its record set last week. The Dow Jones Industrial Average was up by 22 points, or less than 0.1%, and the Nasdaq composite rose 0.7%. These gains were fueled in part by a report showing that wholesale prices increased by 4.7% year-over-year, which is lower than June's 5.5% inflation rate.

This data has traders betting on a reduced chance of interest rate hikes from the Federal Reserve. Currently, there's only a 37% probability of a hike at the next meeting in September, down from around 50% two days ago. If inflation continues to trend downwards, this could lead to the Fed holding off on rate hikes.

The easing of oil prices also contributed to the market's gains, with Brent crude falling 1.4% to $87.71. This drop in oil prices helped to alleviate concerns about inflation and put pressure on Treasury yields. The yield on the 10-year Treasury fell to 4.64%, making it easier for stocks and other investments to grow.