US Stocks Soar to Record High as Inflation Shows Signs of Slowing

The US stock market reached an all-time high on Thursday after inflation showed signs of slowing down. The S&P 500 climbed 0.7% and surpassed its previous record set last week, while the Dow Jones Industrial Average added 69 points, or 0.1%, and the Nasdaq composite gained 0.8%. This increase comes as wholesale prices in the US rose by 4.7% compared to a year ago, which is less severe than June's 5.5% inflation rate.

The Federal Reserve may decide not to raise interest rates if inflation continues on this trend, which could have positive implications for the economy and stock market. However, traders are now betting on just a 35% chance that the Fed will increase the federal funds rate at its next meeting in September, down from around 50% previously.

The easing of oil prices also contributed to the stock market's rise, with the price for a barrel of Brent crude oil falling 2.1% to $87.07. Stocks in the real-estate industry saw significant gains, with companies like AvalonBay Communities and D.R. Horton rising by 2.3% and 2.8%, respectively.