US Stocks Edge Closer to Records as Inflation Eases, Oil Prices Plummet
The US stock market is heading towards new records as inflation concerns ease and oil prices drop. The S&P 500 climbed 0.5% on Thursday, putting it on track to surpass its all-time high set last week. In contrast, the Dow Jones Industrial Average was down 123 points, or 0.2%, by mid-morning.
The inflation rate at the wholesale level slowed to 4.7% in July, a slight improvement from June's 5.5%. This moderation has traders betting on a lower chance of interest rate hikes by the Federal Reserve. The probability of a rate increase at the next meeting in September dropped to 34%, down from around 50% just two days ago.
The yield on the 10-year Treasury fell to 4.64% as oil prices eased back, limiting worries about inflation. Stocks in the real-estate industry led the way, with AvalonBay Communities rising 2.5% and Builders FirstSource adding 1.3%. Fossil Group also surged 4% after reporting better-than-expected quarterly results.