US Stocks Soar to New Heights as Inflation and Oil Prices Ease

The US stock market reached an all-time high on Thursday following positive signs that inflation is decreasing. The S&P 500 index climbed 0.7% and surpassed its previous record set last week, while the Dow Jones Industrial Average added 69 points, or 0.1%. The Nasdaq composite gained 0.8%, driven by easing oil prices and a report showing wholesale price increases were lower than expected.

The report showed that US wholesale prices rose 4.7% in July compared to the same period last year, which is less painful than June's 5.5% inflation rate at the wholesale level. The decrease in inflation rates has traders betting on a reduced chance of interest rate hikes by the Federal Reserve, with the probability now at 35%, down from around 50% two days ago.

Lower interest rates could benefit companies like AvalonBay Communities and D.R. Horton, which both saw significant gains on Thursday. However, Cisco Systems declined 8.4% despite reporting stronger profit and revenue for the latest quarter than expected, as investors may be concerned about its profit margins going forward.