S&P 500 Closes at Record High as US Rate-Rise Fears Ease

NEW YORK — Wall Street finished Thursday at record levels after softer US inflation data strengthened expectations that the Federal Reserve will keep interest rates unchanged next month.

The S&P 500 rose 0.65% to close at a record 7,798.99 points, while the Nasdaq gained 0.81% to 26,803.03.

The Dow Jones Industrial Average added 0.13% to finish at 53,839.99.

Technology stocks provided much of the momentum.

Sandisk rose 13.7%, Micron Technology gained 4.2%, Meta advanced 2.8% and Microsoft climbed almost 1%.

Recent strong forecasts from Microsoft, Amazon and other technology companies have also reduced some concerns about the enormous amounts being invested in artificial-intelligence infrastructure.

Thursday's economic data showed that US producer prices were unchanged in July, supporting the argument that inflationary pressure is not currently accelerating enough to require another immediate interest-rate increase.

Market pricing showed investors assigning roughly a 63% probability that the Federal Reserve will leave rates unchanged in September.

That does not mean inflation concerns have disappeared.

The continuing Middle East conflict could still feed higher energy costs into consumer prices, particularly if oil prices remain elevated for a prolonged period.

Investors are also increasingly monitoring the amount of debt being issued to finance enormous AI projects.

Technology companies and governments are competing heavily for capital, pushing inflation-adjusted long-term bond yields higher in the United States, Britain and Germany. Analysts warn this could eventually increase borrowing costs and weigh on investment.

For now, however, equity investors remain focused on strong earnings and AI-driven growth.

Berean News editorial note: Index levels are closing values for Thursday 13 August and move continuously when markets are open.