US Stocks Rise as Easing Inflation and Falling Oil Prices Boost Sentiment
US stocks closed higher on Thursday as easing inflation data and falling oil prices boosted investor sentiment. The S&P 500 rose 0.66% to close at a fresh record high of 7,799.73, while the Nasdaq Composite gained 0.81% to 26,803.51.
Technology stocks led the advance, with Meta Platforms, Broadcom, Micron Technology, SanDisk, and Netflix contributing to the gains. The sector's strength was driven by investor confidence in artificial intelligence spending, which has improved recently due to recent earnings and optimistic forecasts from major technology companies like Microsoft and Amazon.
The US Producer Price Index (PPI) data released on Thursday showed that prices remained contained, with the index unchanged in July, below economists' expectations. Core PPI rose 0.2%, slightly below forecasts of 0.3%. The report strengthened expectations that the Federal Reserve will leave interest rates unchanged at its September policy meeting.
The combination of easing inflation data and falling oil prices improved overall market sentiment. Brent crude futures settled about 2% lower at $87.07 a barrel, while lower oil prices also helped improve investor confidence in AI spending.