US Stocks Surge as Inflation Eases and Oil Prices Drop
US stocks continued their upward trajectory on Thursday, pushing toward new records as inflation concerns eased and oil prices dropped.
The S&P 500 index rose by 0.7% to reach a new all-time high, while the Dow Jones Industrial Average added 69 points (or 0.1%) and the Nasdaq composite gained 0.8%.
The improvement in inflation numbers was seen as a key factor in the market's positive reaction, with wholesale prices increasing by only 4.7% year-over-year, lower than June's 5.5% rate.
This trend suggests that the Federal Reserve may hold off on interest rate hikes, which could help keep the economy growing without fueling inflation. While Fed officials are split on this issue, traders now expect a 35% chance of an interest rate increase at the next meeting in September, down from 50% just two days ago.
The easing of oil prices also contributed to the market's optimism, with Brent crude falling by 2.1% to $87.07 per barrel.