US Stocks Surge Toward Records as Inflation Eases and Rate Hikes Loom

The US stock market is on track to reach new highs after a report showed inflation is decreasing. The S&P 500 climbed 0.6% and was poised to surpass its record set last week.

A key indicator of wholesale prices rose 4.7% year-over-year, down from June's 5.5%. This decrease in inflation could lead the Federal Reserve to hold off on raising interest rates.

However, Fed officials are divided on whether to raise rates, with some arguing it would be premature and others believing it is necessary to control inflation. The market now gives a 37% chance of rate hikes at the September meeting, down from 50% previously.