S&P 500 hits record high as mild inflation data cool rate-hike expectations
U.S. stocks rose Thursday and Treasury yields fell as further evidence of easing inflation reinforced investors’ expectations that the Federal Reserve will not raise interest rates next month. After two consecutive sessions of gains, the S&P 500 reached a record high. The Nasdaq-100 rose 1.1%, while money-market pricing put the implied probability of a Fed rate hike in September below 40%. Treasuries advanced, although the winning yield at a 30-year Treasury auction reached its highest level in 25 years. Crude oil fell to about $81 a barrel. The S&P 500 rose 0.7% to 7,798.99. The Dow Jones Industrial Average gained 0.1% to 53,839.99, the Nasdaq Composite rose 0.8% to 26,803.03, the Nasdaq-100 climbed 1.1% to 30,084.5, and the Russell 2000 advanced 0.2% to 3,052.847. U.S. wholesale inflation slowed more than expected in July as energy and food prices declined. The Producer Price Index rose 4.7% from a year earlier, down from a 5.5% increase in June. The July PPI was unchanged from the previous month. Glen Smith of GDS Wealth Management said the report showed that, although inflation remains well above the Federal Reserve’s 2% target, it now appears to be stabilizing after surging on higher oil prices following the outbreak of the war in Iran. Arun Sundaram of CFRA said Thursday’s mild inflation data, combined with last week’s weaker-than-expected employment report, would give Fed Chair Kevin Warsh more room to maneuver—perhaps enough for the central bank to keep interest rates unchanged. “But the Fed’s decision is far from settled,” he added. “Investors still have several potential variables to digest.” An unnamed company raised $4.75 billion through its largest-ever dollar bond offering, adding to the wave of debt issuance tied to the artificial-intelligence boom. Its shares jumped after reports that private-equity firm Silver Lake was in talks to acquire the company. Hertz Global Holdings fell sharply after the chief investment officer of Pershing Square said the firm had sold its stake in the car-rental company. An unnamed systems company forecast $7.5 billion in sales related to the artificial-intelligence data-center boom for the current fiscal year, disappointing investors. Cerebras Systems Inc. fell sharply after forecasting growth below some investors’ expectations.
After two consecutive sessions of gains, the S&P 500 reached a record high. The Nasdaq-100 rose 1.1%, while money-market pricing put the implied probability of a Fed rate hike in September below 40%.
Treasuries advanced, although the winning yield at a 30-year Treasury auction reached its highest level in 25 years. Crude oil fell to about $81 a barrel.
The S&P 500 rose 0.7% to 7,798.99. The Dow Jones Industrial Average gained 0.1% to 53,839.99, the Nasdaq Composite rose 0.8% to 26,803.03, the Nasdaq-100 climbed 1.1% to 30,084.5, and the Russell 2000 advanced 0.2% to 3,052.847.
U.S. wholesale inflation slowed more than expected in July as energy and food prices declined. The Producer Price Index rose 4.7% from a year earlier, down from a 5.5% increase in June. The July PPI was unchanged from the previous month.
Glen Smith of GDS Wealth Management said the report showed that, although inflation remains well above the Federal Reserve’s 2% target, it now appears to be stabilizing after surging on higher oil prices following the outbreak of the war in Iran.
Arun Sundaram of CFRA said Thursday’s mild inflation data, combined with last week’s weaker-than-expected employment report, would give Fed Chair Kevin Warsh more room to maneuver—perhaps enough for the central bank to keep interest rates unchanged. “But the Fed’s decision is far from settled,” he added. “Investors still have several potential variables to digest.”
An unnamed company raised $4.75 billion through its largest-ever dollar bond offering, adding to the wave of debt issuance tied to the artificial-intelligence boom. Its shares jumped after reports that private-equity firm Silver Lake was in talks to acquire the company.
Hertz Global Holdings fell sharply after the chief investment officer of Pershing Square said the firm had sold its stake in the car-rental company.
An unnamed systems company forecast $7.5 billion in sales related to the artificial-intelligence data-center boom for the current fiscal year, disappointing investors.
Cerebras Systems Inc. fell sharply after forecasting growth below some investors’ expectations.