2 weeks ago
Wall Street hits record high on cooling US inflation
The stock market is like a giant scoreboard that shows how well big companies are doing.
When the scoreboard goes up, it usually means investors feel good about the future.
This week, the scoreboard reached its highest point ever.
That happened because a report showed that the prices of things businesses sell are going up more slowly.
Slower price increases are called cooling inflation.
When inflation cools, the Federal Reserve, which is like the grown-up bank for banks, is less likely to make borrowing money more expensive.
The Fed had kept its interest rates unchanged at its July meeting.
Investors now think there is a smaller chance the Fed will raise rates again in September.
Prices of everyday things are still high, but the new data made people feel more hopeful.
Wall Street closed at a record high on Thursday, with the S&P 500 rising 0.65% to 7,798.99.
The Nasdaq Composite gained 0.81% and the Dow Jones Industrial Average edged up 0.13%.
The Producer Price Index (PPI) was unchanged in July after falling a revised 0.1% in June.
Annual producer price inflation slowed to 4.7% in July from 5.5% in June, while consumer prices rose 3.4% over the year.
Traders now see about a 35% chance of a September Federal Reserve rate hike, down from about 55% a week earlier.
- Who
- Investors and traders in U.S. markets, with the Federal Reserve's September rate decision in focus.
- What
- Wall Street indexes climbed to record highs after cooler-than-expected wholesale inflation data eased rate-hike concerns.
- Where
- United States, on Wall Street and across U.S. stock markets.
- When
- Thursday, following the release of July producer price data.
- Why
- Softer inflation data reduced expectations that the Federal Reserve will raise interest rates at its September meeting.
Key facts
- S&P 500 close
- 7,798.99 (record high, +0.65%)
- Nasdaq Composite gain
- +0.81%
- Dow Jones Industrial Average gain
- +0.13%
- July PPI (monthly)
- Unchanged after a revised 0.1% decline in June
- Annual producer price inflation
- 4.7% (down from 5.5% in June)
- Annual consumer price inflation
- 3.4% in the 12 months through July
- Likelihood of September Fed rate hike
- About 35%, down from about 55% a week earlier
- Fed benchmark interest rate
- 3.50% to 3.75% range, held at July meeting








