US Rate Hike Bets Diminish Amid Softer Producer Price Data

Global equities experienced a surge on Thursday as investors adjusted their expectations for a potential US rate hike. The release of unchanged U.S. producer price data in July softened the possibility of an interest rate increase, driving tech stocks to propel the S&P 500 to a record intraday high.

This shift comes after consumer price reports aligned with economic forecasts. Market traders adjusted their predictions, estimating a 65% chance that the Federal Reserve will hold off on a rate hike in September.

As a result of this change, gold prices dipped following a two-month peak, while U.S. Treasury yields continued to decline after the release of the producer price data.