S&P 500 Notches Record-High Close as Rate-Hike Worries Ease
The rally came as July producer prices held flat and traders pushed back odds of another Federal Reserve rate hike, CME Group data showed.
- The S&P 500 hit a record high of 7,800 points on Thursday, fueled by advances in heavyweight technology stocks and tame wholesale inflation data that bolstered investor confidence in the market.
- Producer price inflation remained flat in July as goods prices fell and service costs increased marginally, supporting expectations the Federal Reserve will not raise interest rates at its September meeting.
- Technology stocks led the rally, with SanDisk and Micron Technology surging 16 percent and 6.7 percent respectively, while Meta Platforms climbed 2.8 percent and Netflix added 3.7 percent after billionaire investor Bill Ackman unveiled a new holding.
- Traders are pricing in a 63 percent chance the Fed will keep interest rates unchanged at its next month's meeting, according to the CME FedWatch tool, as the inflation report pared expectations for a September rate hike.
- Jay Hatfield, CEO of Infrastructure Capital Advisors, said the "AI earnings-driven tech boom continues", noting it is "an earnings boom, not a bubble", though headline inflation remains above the Fed's 2 percent target.
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65 Articles
Wall Street Review: S&P 500 Hits Record High as Inflation Cools, Earnings Stay Strong
The S&P 500 climbed to a fresh record high this week, powered by new data showing inflation is cooling—developments that, together with the previous week’s weak jobs report, further raise the odds the Federal Reserve holds interest rates steady at its next meeting. Aiding the positive market sentiment for equities was a wave of strong earnings from AI-infrastructure companies that added to investor interest in stocks. By Friday’s market close, t…
S&P closes high as rate-hike worries ease
The S&P 500 notched a recordhigh close Thursday, fueled by advances in Sandisk and other heavyweight technology stocks, as tame producer price inflation data supported expectations the Federal Reserve will not raise interest rates at its September meeting.
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