US Stocks Ticking Toward Records as Oil Prices Drop and Inflation Eases

The US stock market is inching toward an all-time high after inflation numbers showed a slight decrease. The S&P 500 climbed 0.5% and was on track to top its record set last week, while the Dow Jones Industrial Average was down 123 points, or 0.2%, as of 11:30 am Eastern time.

The latest sign that inflation is getting less bad came in a report showing prices at the US wholesale level were 4.7% higher last month than a year earlier. This marks a decrease from June's 5.5% inflation rate at the wholesale level, and it was slightly better than economists expected.

The Federal Reserve may decide to hold off on hikes to interest rates if inflation continues to trend in this way. Higher rates would help keep a lid on inflation but do so by intentionally slowing the economy and making it more expensive for everyone to borrow money.