Tech stocks power S&P 500 to record high as oil, producer inflation weaken

On Thursday, the S&P 500 reached a record high, driven by technology sector stocks as lower crude prices increased investor appetite and softer-than-expected producer price inflation. Brent crude futures fell 2.2% after six days of gains, as investors considered weaker global demand prospects and higher U.S. crude stocks. Iran and the U.S. are at odds in their efforts to end the Middle East conflict, with limited traffic through the Strait of Hormuz.

Tech stocks also propelled the Nasdaq, with the S&P 500 information technology index surging 1%. Tech giants Microsoft, Nvidia, and Apple led the gains, with Microsoft up 1.4%, Nvidia 0.6%, and Apple 0.5%. Analyst Brock Weimer noted a shift away from cyclical sectors toward Big Tech in early July. Financial and healthcare stocks supported the Dow, which closed at 53,960.29, while the S&P 500 rose to 7,805.02 and the Nasdaq Composite to 26,832.54.

Producer price inflation data showed a 4.7% increase, below the expected 4.9% gain, suggesting the Fed may maintain interest rates steady. Traders favored a Fed hold at their next meeting, with a 65% probability compared to 60% prior to the data. Robust sector earnings, particularly in tech, boosted U.S. stocks after a challenging second half of 2026, helping the Nasdaq recover from a 10% drop from its July high.