US Inflation Easing Fuels Steady Markets as Interest Rate Hopes Fade

Stock markets were steady on Thursday as investors welcomed further signs of easing US inflation. The Labor Department reported that producer prices rose 4.7 percent in July, down from June and below the 4.9 percent rise forecast by analysts.

This reading bolstered expectations that Federal Reserve officials would not feel obliged to raise borrowing costs quickly, which could crimp economic growth.

The Dow and S&P 500 indexes jumped at the open but eased after record closing highs in recent sessions.

However, Fed officials are expected to tighten borrowing costs at some point due to inflation remaining above the two percent target for more than five years.