US stocks rise to a record as oil prices drop and inflation gets less bad
1 of 2 |
Trader Fred Demarco, right, and Specialist Michael Pistillo, left, work on the floor of the New York Stock Exchange, Friday, Aug. 7, 2026, in New York. /Yuki Iwamura)
2 of 2 |
A general view shows the New York Stock Exchange, Friday, Aug. 7, 2026, in New York. /Yuki Iwamura)
1 of 2 |
Trader Fred Demarco, right, and Specialist Michael Pistillo, left, work on the floor of the New York Stock Exchange, Friday, Aug. 7, 2026, in New York. /Yuki Iwamura)
1 of 2
Trader Fred Demarco, right, and Specialist Michael Pistillo, left, work on the floor of the New York Stock Exchange, Friday, Aug. 7, 2026, in New York. /Yuki Iwamura)
2 of 2 |
A general view shows the New York Stock Exchange, Friday, Aug. 7, 2026, in New York. /Yuki Iwamura)
2 of 2
A general view shows the New York Stock Exchange, Friday, Aug. 7, 2026, in New York. /Yuki Iwamura)
By
STAN CHOE
Updated [hour]:[minute] [AMPM] [timezone], [monthFull] [day], [year]
Leer en español
NEW YORK (AP) — The U.S. stock market rose to an all-time high Thursday following the latest sign that inflation is getting less bad. Stocks also got a lift from easing oil prices in their latest yo-yo move
The S&P 500 climbed 0.7% and topped its prior record set last week. The Dow Jones Industrial Average added 69 points, or 0.1%, and the Nasdaq composite gained 0.8%
Wall Street relaxed after a report showed prices at the U.S. wholesale level were 4.7% higher last month than a year earlier. While that’s more painful than anyone would like, it’s not as bad as June’s 5.5% inflation rate at the wholesale level, and it was slightly better than economists expected
If inflation continues to trend that way, the Federal Reserve could decide to hold off on hikes to interest rates. Higher rates would help keep a lid on inflation, but they do so by intentionally slowing the economy and making it more expensive for everyone to borrow money
Fed officials are split on whether they should have already begun hiking interest rates. But Thursday’s report, following a similar update on inflation at the U.S. consumer level the day before, has traders now betting on just a 35% chance that the Fed will raise the federal funds rate at its next meeting in September. That’s down from the roughly 50% probability seen two days ago, according to data from CME Group
AP AUDIO: US stocks rise toward records as oil prices drop and inflation gets less bad
U.S. stocks are rising toward an all-time high
Any increase by the Fed would be the first in more than three years. It also could anger President Donald Trump, who has been lobbying for lower interest rates
Asian shares mostly fall and US futures are little changed after US inflation data improves
2 MIN READ
Wall Street rises near a record as AI stocks climb and worries about inflation ease a bit
3 MIN READ
US stocks edge further from their records as oil prices keep swinging
3 MIN READ
Treasury yields sank in the bond market, which eases pressure on stocks and other investments. The yield on the 10-year Treasury fell to 4.65% from 4.68% late Wednesday and from 4.72% on Monday, though it’s still well above its 3.97% level from before the war with Iran sent oil and gasoline prices surging
Oil prices eased back on Thursday, helping to limit worries about inflation. The price for a barrel of Brent crude oil fell 2.1% to $87.07
It’s been swinging sharply recently and pinballed between $72 and $102 last month as hopes rose and fell that a deal in the war could allow oil tankers to freely exit the Middle East again and deliver crude worldwide
On Wall Street, stocks in the real-estate industry climbed to some of the market’s bigger gains. When interest rates are lower and bonds are paying less in yield, the dividends that many real-estate investment trusts pay look more attractive
Lower mortgage rates could also drive more activity in the housing market, and the average long-term U.S. mortgage rate fell this week for the first time in six weeks
AvalonBay Communities, which owns apartments across the country, rose 2.3%. Homebuilder D.R. Horton added 2.8%
Fossil Group climbed 5.9% after the seller of watches and jewelry became one of the latest companies to report better results for the latest quarter than analysts expected. Such reports have helped drive Wall Street to records because stocks tend to track the path of corporate profits over the long term
They helped offset a drop for Cisco Systems, which fell 8.4% even though the tech giant reported stronger profit and revenue for the latest quarter than Wall Street expected
Analysts said investors may be worried about its profit margins going forward, and its stock has been shaky through the summer amid worries that AI-related stocks in general shot too high
All told, the S&P 500 rose 50.49 points to 7,798.99. The Dow Jones Industrial Average added 69.72 to 53,839.99, and the Nasdaq composite climbed 214.54 to 26,803.03
In stock markets abroad, indexes dipped in Europe following a mixed finish in Asia
South Korea’s Kospi again had one of the world’s biggest moves and jumped 3.6%. Seoul has been at the center of the world’s swings for artificial-intelligence stocks because its market is dominated by two tech giants, Samsung Electronics and SK Hynix
AP Business Writers Yuri Kageyama and Michelle Chapman contributed to this report
