US Stocks Surge to Record High on Slowing Inflation and Easing Oil Prices

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, while the Dow Jones Industrial Average added 69 points or 0.1%. The Nasdaq composite gained 0.8%, driven by reports showing that wholesale prices rose 4.7% year-over-year in July, a decrease from June's 5.5% inflation rate.

This improvement in inflation rates has led to a reduced probability of the Federal Reserve raising interest rates at its next meeting in September. Traders now estimate a 35% chance of an interest rate hike, down from 50% two days ago. Lower interest rates would make borrowing cheaper and could boost economic growth.

Oil prices also contributed to the market's gains, dropping 2.1% to $87.07 per barrel. The decline in oil prices eased concerns about inflation and helped limit worries about rising costs. Stocks in the real-estate industry saw significant gains, with AvalonBay Communities rising 2.3% and Homebuilder D.R. Horton adding 2.8%. Fossil Group climbed 5.9% after reporting better-than-expected quarterly results.

However, Cisco Systems fell 8.4%, despite posting stronger profit and revenue for the latest quarter than analysts anticipated. Analysts attributed this drop to concerns about the company's profit margins going forward.