S&P 500 Hits Record Close as Cooling US Inflation, Lower Oil Prices Lift Stocks

Major US stock indexes rose across the board as inflation pressures eased and oil prices fell, lifting the S&P 500 to a record closing high.

On Aug. 13, the S&P 500 gained 0.65% to 7,798.99 at the New York Stock Exchange. The Dow Jones Industrial Average rose 0.13% to 53,839.99, while the Nasdaq Composite advanced 0.81% to 26,803.03.

The US producer price index for July was unchanged from the previous month, undershooting market expectations for a 0.2% increase. The consumer price index released earlier also slowed for a third straight month, easing some concerns about further interest-rate increases.

CME FedWatch showed the federal funds futures market pricing in a 67.6% chance that the Federal Reserve will keep its benchmark interest rate unchanged in September, up from 59.4% a day earlier.

Lower oil prices also supported investor sentiment. Brent crude for October delivery fell 2.15% to settle at $87.07 a barrel, while West Texas Intermediate for September delivery dropped 2.43% to close at $81.25.

Technology stocks were also strong. SanDisk surged 13.7% and Micron Technology rose 4.2%. Meta gained 2.8% and Microsoft added 1.0%, while Nvidia and Tesla climbed 0.54% and 3.80%, respectively. SK Hynix American depositary receipts jumped 7.29%.

US Treasury yields fell as inflation worries eased. The 10-year Treasury yield declined about 5 basis points from the previous session to 4.64%, while the two-year yield fell about 5 basis points to 4.15%.