The S&P 500 climbed to a fresh record on Thursday as falling oil prices and softer-than-expected inflation data boosted investor sentiment.
The broad-market index gained 0.65%, breaking above 7,800 for the first time and finishing at a record 7,798.99. The Nasdaq Composite advanced 0.81% to 26,803.03, supported by gains in Meta Platforms, Micron Technology and Netflix. The Dow Jones Industrial Average edged up 69.72 points, or 0.13%, to close at 53,839.99.
Oil prices also moved lower, with Brent crude falling more than 2% to $87.07 a barrel, while West Texas Intermediate dropped over 2% to $81.25. Traders continued to assess weakening oil demand amid the ongoing U.S.-Iran conflict.
Investor focus remained on U.S. inflation after July’s Producer Price Index came in unchanged, below economists’ forecast of a 0.2% increase. Core PPI, which excludes food and energy, rose 0.2%, also below expectations of 0.3%.
The softer PPI reading followed Wednesday’s in-line CPI report, which showed consumer prices rising 0.1% month over month in July. The combination of relatively subdued inflation data encouraged traders to reduce expectations for a September rate hike.
On the corporate side, Cisco Systems was among the biggest decliners, sliding more than 8% after its latest earnings report disappointed investors despite beating expectations for revenue and earnings. Cerebras fell nearly 12%, while Coherent dropped around 8% following their respective earnings updates.
Frequently Asked Questions
Why did the S&P 500 reach a new record high?
The S&P 500 was supported by softer-than-expected PPI data, easing inflation concerns, and falling oil prices, which improved expectations around future monetary policy.
How did the latest inflation data affect rate expectations?
The weaker PPI reading, combined with the in-line CPI report, reduced concerns about persistent inflation and led traders to scale back expectations for a September rate hike.
Why are falling oil prices important for stocks?
Lower oil prices can ease inflationary pressures and reduce input costs for businesses, potentially supporting corporate margins and investor sentiment.
Can the S&P 500 continue making new highs?
Further gains could depend on inflation remaining under control, interest-rate expectations staying supportive, corporate earnings remaining strong, and geopolitical risks not escalating.
