Stocks Surge as US Inflation Data Eases Rate Hike Pressure

Stocks and bond prices rose on Thursday as investors cheered another relatively benign snapshot of U.S. inflation, which reduces the pressure on the Federal Reserve to raise interest rates.

The S&P 500 barreled to a fresh high with a 0.7% gain, while the Nasdaq also climbed 0.8%. Seven sectors on the S&P 500 rose, led by communications services with a 1.6% increase, while four fell, including materials at -0.7%.

U.S. producer prices remained unchanged in July, further dimming rate hike odds, and Cleveland Fed President Beth Hammack repeated her view that rates should be raised now if inflation is to get back to target.