S&P hits record, US stocks up on inflation data

Wall Street stocks climbed higher on Thursday, with the S&P 500 reaching a new record high. Investors were pleased by further evidence suggesting US inflation was easing. The Producer Price Index (PPI) remained unchanged in July when compared with June, although it increased 4.7 percent over the past 12 months, a slowdown from the 5.5 percent rise in the previous month.

This data reinforced the belief that the US Federal Reserve may not need to raise interest rates rapidly. According to Stephen Brown, an economist at Capital Economics, a September interest rate hike, which had been anticipated, now appears unlikely. However, market observers are still cautious about the potential for persistent inflation.

The US Treasury Department's auction of 30-year bonds saw the highest yield since 2001, at 5.216 percent. All three major US indices – the S&P 500, Nasdaq, and Dow Jones – closed higher on the day. The S&P 500 gained 0.7 percent to 7,798.99, marking a fresh record. Analyst Art Hogan of B Riley Wealth Management suggested that the recent inflation reports were positive, but he cautioned against overreacting to the current market movements.

He noted that this has been the slowest week of summer in terms of trading volume, making it difficult to attribute much significance to the recent gains. Seoul's Kospi index also experienced a significant rise of 3.6 percent, primarily due to chipmakers SK Hynix and Samsung. After hitting a record high in June, the South Korean index had fallen by 40 percent by early August but has since recovered by about 20 percent.

London's stock market faced a downturn as shares in major mining companies declined following Antofagasta's revision of its production outlook. Oil prices experienced a drop after recent increases, due to uncertainty surrounding Gulf shipments through the Strait of Hormuz, with both US President Donald Trump and Iran asserting control over the vital waterway.

Among individual companies, Cisco, a component of the Dow, saw a 8.4 percent decline despite reporting growth-related to artificial intelligence. UBS noted that the decline in Cisco shares might be due to concerns about potential profit margin slowdown, but they considered it an opportunity for investment. Netflix, on the other hand, saw a 5.4 percent increase following Bill Ackman's Pershing Square's stake purchase in the streaming company.

The S&P 500 increased by 0.7 percent to reach 7,798.99, the Nasdaq gained 0.8 percent to 26,803.03, while the Dow Jones climbed 0.1 percent to 53,839.99. Overall, the S&P 500 has risen by approximately 14 percent in 2026, and the Nasdaq has gained around 15 percent.