S&P 500 notches record-high close as rate-hike worries ease

On Thursday, the S&P 500 reached a record-high close, driven by gains in key technology stocks and a drop in inflation expectations, indicating the Federal Reserve may not raise interest rates at its September meeting. Memory chip producers Sandisk and Micron Technology saw sharp increases of 13.7% and 4.2%, respectively, while Microsoft and Meta Platforms also gained share value.

Conversely, CoreWeave experienced a 1.3% decline. The surge in technology stocks stemmed from positive earnings forecasts from companies like Microsoft and Amazon, which have eased concerns over substantial investments in AI-driven data centers. Analyst Jay Hatfield noted that the current tech boom is fueled by earnings rather than a bubble.

The S&P 500 finished the day at 7,798.99 points, surpassing its previous record high from the previous Friday. The Nasdaq added 0.81% to 26,803.03 points, and the Dow Jones Industrial Average rose 0.13% to 53,839.99 points. Seven sectors within the S&P 500 experienced gains, led by communication services and real estate. In 2026, the S&P 500 has risen approximately 14%, while the Nasdaq gained around 15%.

Notable declines included Cisco Systems, which fell 8.4% despite a revenue forecast that didn't meet high expectations. Meanwhile, tensions persist between Iran and the United States over the ongoing conflict, and tensions remain high in the Strait of Hormuz due to restricted traffic. U.S. producer prices remained stable in July, with services experiencing a marginal increase and goods seeing a drop.

Unemployment claims also rose slightly, suggesting a stable job market. Traders are pricing a 63% probability that the Federal Reserve will maintain interest rates steady at its upcoming meeting, according to CME’s FedWatch tool. Brent crude oil futures fell nearly 2% to $87.07 per barrel. Netflix gained 5.4% following Bill Ackman's investment in the streaming service as part of Pershing Square's major portfolio restructuring.

In contrast, Tapestry's shares dropped over 16% after it predicted modest annual revenue growth. Dell Technologies and HP both saw gains of 2.1% and 6.9%, respectively, following favorable quarterly results for China's Lenovo. Advancing stocks outnumbered declining ones by a ratio of 1.7-to-one within the S&P 500, with 30 new highs and one new low recorded for the S&P 500, and 155 new highs and 85 new lows for the Nasdaq.

U.S. exchanges experienced light trading volume, with 16.1 billion shares exchanged compared to the 17.5 billion average over the previous 20 sessions.