The S&P 500 closed at a record high on Thursday, lifted by a flat July producer price report. The reading further eased worries about a Federal Reserve rate hike next month. The benchmark index rose 0.65% to close at 7,798.99, after touching an intraday all-time high of 7,816.70.
It marked the index's 27th record close of the year. The Nasdaq Composite gained 0.81% to 26,803.03, and the Dow added 0.13% to 53,839.99. The S&P 500 is up over 14% in the last six months.
The Bureau of Labor Statistics said the Producer Price Index for final demand was unchanged in July. Economists had forecast a 0.2% rise. Annual producer-price growth slowed to 4.7% from 5.5% in June.
That followed Wednesday's Consumer Price Index report. Prices rose just 0.1% for the month and 3.4% over the past year. Not everyone is convinced the Fed is done tightening.
BofA still expects three more Fed hikes, arguing the disinflation trend remains incomplete. Traders now put a 63% chance on the Fed holding rates steady in September, according to CME's FedWatch tool. That marks a sharp shift from expectations a month ago that favored another hike.
Communication services led Thursday's gains, up 1.56%, followed by a 1.34% advance in real estate. Both sectors are sensitive to borrowing costs. Chipmakers Sandisk and Micron Technology surged 13.7% and 4.2%.
Extract — continue reading at the source.
