US Stocks Hit Record High as Inflation Concerns Ease
The US stock market rose to an all-time high on Thursday following a report that inflation is getting less bad. The S&P 500 climbed 0.7% and surpassed 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%. This improvement in inflation numbers has traders betting on a lower chance of interest rate hikes by the Federal Reserve.
According to data from CME Group, there's now only a 35% probability that the Fed will raise the federal funds rate at its next meeting in September, down from around 50% two days ago. This decrease in probability has eased pressure on stocks and other investments, with Treasury yields sinking in the bond market.
Oil prices also dropped, helping to limit worries about inflation. The price for a barrel of Brent crude oil fell 2.1% to $87.07. Stocks in the real-estate industry climbed to some of the market's bigger gains, including AvalonBay Communities and D.R. Horton.
Cisco Systems, however, fell 8.4% despite reporting stronger profit and revenue for the latest quarter than Wall Street expected. Analysts said investors may be worried about its profit margins going forward.