US stocks moved higher on Thursday, with the S&P 500 closing at a fresh record as softer producer inflation eased concerns that the Federal Reserve may need to raise interest rates again in September.
The S&P 500 gained 0.65% to 7,798.99, while the Nasdaq Composite rose 0.81% to 26,803.03. The Dow Jones Industrial Average added a more modest 0.13% to 53,839.99.
The latest Producer Price Index showed no monthly increase in July, helping calm fears that inflation pressures were accelerating again. The data followed Wednesday’s relatively mild consumer inflation report and strengthened expectations that the Fed could leave rates unchanged at its September meeting.
Technology stocks helped lead the market higher:
- Sandisk surged 13.7%
- Micron gained 4.2%
- Meta climbed 2.8%
- Microsoft rose nearly 1%
- Netflix jumped 5.4%
- HP gained 6.9%
Not every company joined the rally. Cisco dropped 8.4% despite issuing upbeat revenue guidance, while Tapestry sank more than 16% after giving a weaker revenue outlook.
Oil prices also fell around 2%, offering some relief from concerns that high energy costs could keep inflation elevated as tensions between the US and Iran continue.
Investor takeaway: Thursday’s record close shows investors are becoming more comfortable with the idea that the Fed can keep rates steady while corporate earnings remain strong. Inflation and the AI-driven tech rally remain the two major forces shaping the market.
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