US Stocks Soar to New Heights as Inflation Fears Ease

The US stock market reached an all-time high on Thursday following a report that inflation is getting less bad. The S&P 500 climbed 0.7% to top its prior record set last week, while the Dow Jones Industrial Average added 69 points or 0.1%. The Nasdaq composite gained 0.8%. Easing oil prices also contributed to the market's lift, with the price for a barrel of Brent crude oil falling 2.1% to $87.07.

The report showed that wholesale prices were 4.7% higher last month than a year earlier, which is more painful than anyone would like but not as bad as June's 5.5% inflation rate at the wholesale level. If this trend continues, it could lead the Federal Reserve to hold off on interest rate hikes, which could slow down the economy and make borrowing money more expensive.

However, Fed officials are split on whether they should have already begun hiking interest rates, and traders now bet on just a 35% chance that the Fed will raise the federal funds rate at its next meeting in September. This is down from the roughly 50% probability seen two days ago.