Inflation Fears Eased, US Stocks Tick Higher

The US stock market edged closer to its all-time high on Thursday after a report showed that inflation at the wholesale level was not as bad as expected. The S&P 500 climbed 0.6% and was on track to surpass its record set last week, while the Dow Jones Industrial Average rose by 22 points.

The US Federal Reserve's next move on interest rates is now in doubt after the inflation report. Traders are betting on a just 37% chance that the Fed will raise rates at its next meeting in September, down from roughly 50% two days ago.

Oil prices also eased back on Thursday, helping to limit worries about inflation. The price for a barrel of Brent crude oil fell 1.4% to $87.71. Stocks in the real-estate industry led the way on Wall Street, with AvalonBay Communities and Builders FirstSource rising by 2.3% and 1.7%, respectively.

Fossil Group's shares jumped 4.7% after the company reported better-than-expected quarterly results. However, Cisco Systems' stock fell 8.9% despite its strong profit and revenue report, as investors may be worried about its future profit margins.