US Stocks Tick Toward Records as Oil Prices Drop and Inflation Gets Less Bad

The US stock market is edging closer to an all-time high after a report showed that inflation is getting less bad, with wholesale prices rising by only 4.7% last month compared to 5.5% in June.

Stocks also received a boost from easing oil prices, which have been swinging wildly due to concerns about the war in Iran. The price of Brent crude oil fell 1.4% to $87.71 per barrel.

The Dow Jones Industrial Average was up 22 points, or less than 0.1%, as of 2:10 p.m. Eastern time, while the Nasdaq composite rose 0.7%. The S&P 500 climbed 0.6% and is on track to top its record set last week.

Traders are now betting on just a 37% chance that the Federal Reserve will raise interest rates at its next meeting in September, down from around 50% previously.

The Fed's decision to hike interest rates would intentionally slow the economy and make borrowing more expensive. However, if inflation continues to trend downward, the Fed may decide to hold off on rate hikes.