US Stocks Hit Record High on Slowing Inflation and Falling Oil Prices

The US stock market rose to a new record high on Thursday as inflation showed signs of slowing down. The S&P 500 index climbed 0.7% and surpassed its previous all-time high, while the Dow Jones Industrial Average added 0.1% and the Nasdaq composite gained 0.8%. The improved inflation numbers came after a report showed that wholesale prices rose by 4.7% in July compared to the same period last year.

Oil prices also fell, with Brent crude dropping 2.1%, which helped alleviate concerns about inflation. Treasury yields eased in the bond market as investors reassessed their expectations for interest rate hikes.

The Federal Reserve's decision on interest rates is now seen as less likely, with traders betting on a 37% chance of a hike at its next meeting in September, down from around 50% previously. Lower interest rates could boost economic growth and drive up stock prices further.