US Stocks Soar to Record Highs Amid Easing Inflation and Oil Prices

The US stock market surged to new highs on Thursday as inflation showed signs of easing and oil prices dropped. The S&P 500 rose 0.7% to a record high, with the Dow Jones Industrial Average increasing by 69 points (0.1%) and the Nasdaq composite gaining 0.8%. This boost came despite wholesale prices rising 4.7% from last year, but this was lower than expected and marked a decline from June's 5.5% inflation rate.

The Federal Reserve's potential to raise interest rates has decreased, with traders now betting on only a 35% chance of a hike at the next meeting in September. Lower interest rates would help keep a lid on inflation but intentionally slow down the economy and make borrowing more expensive.

Stocks in the real-estate industry saw significant gains, as lower mortgage rates could boost housing activity. Companies like AvalonBay Communities (2.3% increase) and D.R. Horton (2.8% increase) benefited from this trend.