US Stocks Ticking Toward Record Highs on Easing Oil Prices and Lower Inflation

The US stock market is edging toward a new all-time high after inflation reports showed a decline in wholesale prices. The S&P 500 climbed 0.6% and was on track to surpass its previous record set last week. This upward trend is largely attributed to easing oil prices, which dropped by 1.4% to $87.71 per barrel of Brent crude oil.

The inflation rate at the wholesale level stands at 4.7%, down from June's 5.5%. While still high, this decrease has traders betting on a lower probability of interest rate hikes by the Federal Reserve. The chance of a rate increase in September is now at 37%, down from 50% just two days ago.

The real-estate industry played a significant role in driving stocks higher, with companies such as AvalonBay Communities and Builders FirstSource experiencing gains. This sector's performance can be attributed to lower interest rates making bonds less attractive, thus increasing the appeal of dividend-paying investments like these.