S&P 500 Sets Record High as Cooling Inflation and Falling Oil Prices Boost Stocks

What happened

On August 13, U.S. stocks advanced, with the S&P 500 hitting an intraday record of 7,816.7, led by technology and semiconductor shares. The Nasdaq Composite rose 1.04% and the Dow Jones added 0.34%. July producer prices rose 4.7% from a year earlier, below the 4.9% estimate, while Brent crude fell more than 2% to about $87 amid demand worries and rising inventories. Traders raised the odds of the Fed holding rates steady next month to 65%.

Why it matters

The cooler-than-expected wholesale inflation and falling oil prices ease fears of resurgent price pressures, reducing the likelihood of an imminent Fed rate hike. That supports higher-valuation growth stocks and overall risk appetite. However, policy uncertainties and lack of progress on U.S.-Iran tensions remain a headwind.