US Stocks Surge Amid Easing Inflation Concerns

US stocks rose Thursday, August 13, as investors welcomed further signs of easing US inflation. The Producer Price Index in July was flat on a month-on-month basis, while it rose 4.7 per cent from a year ago, down from a 5.5 per cent increase in June.

The reading bolstered expectations that Federal Reserve officials would not feel obliged to raise borrowing costs quickly. Stephen Brown, an economist at Capital Economics, said: 'A September interest rate hike - as we've been forecasting - is now looking unlikely.'

However, market watchers remain on guard about the risk of persistent inflation. The US Treasury Department's auction for the 30-year bond drew the highest yield since 2001 at 5.216 per cent.