US Stocks Rise Toward Records as Inflation Eases and Oil Prices Drop

US stocks rose toward new records on Thursday as inflation concerns eased and oil prices dropped. The S&P 500 climbed 0.8% and was on track to top its record set last week, while the Dow Jones Industrial Average was up 185 points, or 0.3%, as of 10:15 a.m. Eastern time.

The inflation rate at the wholesale level was 4.7% higher last month than a year earlier, which is still very high but not as bad as June's 5.5%. This has led traders to bet on just a 35% chance that the Federal Reserve will raise interest rates at its next meeting in September.

The drop in oil prices also helped ease worries about inflation, with Brent crude oil falling 3.3% to $86.02 per barrel. Companies with big fuel bills, such as United Airlines and Carnival, benefited from this decline.