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

The US stock market is edging closer to an all-time high after a report showed that inflation at the wholesale level has decreased. The S&P 500 rose by 0.6%, while the Dow Jones Industrial Average was up 22 points, or less than 0.1%. The Nasdaq composite was 0.7% higher.

Prices at the US wholesale level were 4.7% higher last month compared to a year earlier, which is still high but lower than June's 5.5% rate. This has led traders to bet on a reduced chance of interest rate hikes by the Federal Reserve.

The probability of a rate hike in September has dropped to 37%, down from around 50% two days ago. If inflation continues to trend downward, the Fed may hold off on hiking interest rates. Higher rates would slow down the economy and make borrowing more expensive.

Stocks in the real-estate industry are performing well due to lower mortgage rates and attractive dividends from real-estate investment trusts. Fossil Group rose by 4.7% after reporting better quarterly results than expected.