S&P 500 Hits Record as Inflation Fears Ease

The S&P 500 closed at a record high after US producer prices came in flat for July, firming bets that the Federal Reserve will not raise interest rates next month.

The index rose 0.65% to a record 7,798.99, with the Nasdaq Composite up 0.81% and the Dow adding 0.13%.

However, inflation remains above the Fed's 2% target, with Richmond Fed president Tom Barkin arguing for holding steady while Cleveland's Beth Hammack reiterated her call to raise rates now.