NEW YORK/MILAN, Aug 13 ( ) - Global equities rose on Thursday as investors pared back their bets on a U.S. rate hike, while oil prices fell more than 2% as higher inventories and lower global demand forecasts offset geopolitical concerns. U.S. producer price data, which was unchanged in July, reduced expectations for a Federal Reserve rate hike next month, helping tech stocks power the S&P 500 to an intraday record high. The data followed Wednesday's consumer price report, which showed U.S. prices rose 3.4% in the 12 months through July, in line with economists' expectations.
Traders scaled back their bets on a September rate hike, pricing in a 65% probability of the Fed staying on hold next month versus 50% on Wednesday. Gold prices fell after touching a two-month peak. Treasury yields extended their decline after the producer price data.
MSCI's gauge of stocks across the globe rose 5.90 points, or 0.51%, to 1,160.43. The Dow Jones Industrial Average rose 69.72 points, or 0.13%, to 53,839.99, the S&P 500 rose 50.49 points, or 0.65%, to 7,798.99 and the Nasdaq Composite rose 214.54 points, or 0.81%, to 26,803.03. "Earnings season (for AI infrastructure names) has been strong and shows no signs of slowdown in capex," said Mohit Kumar, an economist at Jefferies.
He added that the bank remained with an overweight position in the AI sector. "The background of high amounts of cash in the system and Fed not hiking (Jefferies view) should continue to support risky assets," he said. European shares were muted as investors awaited euro zone inflation data following a strong earnings season.
Weaker commodity prices also weighed on energy and mining shares. The pan-European STOXX 600 closed little changed at 659.24 points. The benchmark retreated from record highs in the previous session.
MSCI's broadest index of Asia-Pacific shares outside Japan closed up 0.96% and emerging market stocks rose 0.83% to 1,695.93. Washington and Tehran traded accusations on Thursday over a deal to reopen the strategically vital Strait of Hormuz, with the United States saying Iran had failed to meet its obligations and Iran countering that Washington had not delivered on ending a blockade of Iranian ports. Brent crude futures finished down 2.15% at $87.07 a barrel following a six-session rally, and U.S. crude closed down 2.4% at $81.25 a barrel after advancing for five sessions.
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