S&P 500 Hits Record High 7,799 as Cool Inflation Data Lifts Rate-Cut Hopes

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.

Inflation Keeps Cooling

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.

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