Stocks pushed higher on Thursday, with the S&P 500 closing at a record high just below the 7,800 mark, as a fresh batch of tame inflation data reinforced expectations that the Federal Reserve will hold interest rates steady next month. Softer readings on wholesale prices, arriving a day after an in-line consumer inflation report, helped pull bond yields lower and gave buyers the confidence to keep bidding up shares, particularly in the technology sector.
What Moved Markets
The S&P 500 rose 50.49 points, or 0.65%, to close at a record 7,798.99, stopping just short of the 7,800 milestone. The Nasdaq Composite led the major averages, adding 214.54 points, or 0.81%, to finish at 26,803.03, powered by strength in large-cap technology and chip names. The Dow Jones Industrial Average lagged its peers but still eked out a gain, rising 83.20 points, or 0.15%, to 53,853.47.
The driving force behind the advance was inflation. The July Producer Price Index showed core wholesale prices rising just 0.2%, below the 0.3% economists had expected. Coming on the heels of Wednesday’s in-line consumer price data, the report added to the case that price pressures are moderating, giving the Fed room to leave rates unchanged. Traders trimmed the odds of a September rate hike to roughly 35%. Falling oil prices reinforced the theme, with Brent crude sliding more than 2% to $87.07 a barrel and West Texas Intermediate settling near $81.25.
Notable Movers
Netflix (NFLX) climbed about 3.9% after billionaire investor Bill Ackman’s Pershing Square disclosed a new stake in the streaming giant, a vote of confidence that drew fresh attention to the stock.
Micron Technology (MU) advanced roughly 3.1% as memory-chip and artificial-intelligence names continued to attract buyers, extending a strong run for the semiconductor group.
Meta Platforms (META) was another standout among megacap technology stocks, helping lead the Nasdaq higher as investors rotated back into the growth names that have driven much of this year’s rally.
Cerebras Systems (CBRS) bucked the upbeat mood, tumbling roughly 14% after the AI-chip company reported second-quarter revenue of $180 million, short of the $194 million analysts had expected. The miss served as a reminder that even in a hot sector, disappointing results can be punished quickly.
Looking Ahead
With inflation data now largely in hand for the month, investors will turn their focus to the remaining wave of corporate earnings, including results from retailers and technology suppliers that offer a read on consumer spending and demand for AI infrastructure. Commentary from Fed officials will also be closely watched for clues on the path of interest rates into the fall. For now, the combination of easing price pressures and resilient corporate profits has kept the bull market intact, but with major indexes at record highs, the bar for further gains is rising. Retail investors should keep an eye on how the market digests upcoming data and whether the leadership can broaden beyond technology.