Stocks Soar to New High as Inflation Eases and Oil Prices Drop

The US stock market hit an all-time high on Thursday as inflation showed signs of easing and oil prices dropped.

The S&P 500 climbed 0.7% to top its previous record set last week, while the Dow Jones Industrial Average added 69 points or 0.1%, and the Nasdaq composite gained 0.8%.

A report showed that wholesale prices in the US were 4.7% higher last month than a year earlier, which is less painful than June's 5.5% inflation rate at the wholesale level, but still more than economists expected.

Lower interest rates could be on the horizon if inflation continues to trend this way, which would mean the Federal Reserve might hold off on hiking interest rates, a move that would intentionally slow the economy and make borrowing money more expensive.

The yield on the 10-year Treasury fell to 4.65% from 4.68% late Wednesday, easing pressure on stocks and other investments.