S&P 500 Hits New Record as Muted PPI Data Boosts Sentiment
US stock markets mostly rose during Thursday's trading (Aug 13) after producer inflation data came in weaker than expected, reinforcing expectations that the Federal Reserve will not raise interest rates next month. The S&P 500 climbed 0.3% to set a new record, while the Dow Jones gained 0.5% and the Nasdaq 100 remained flat.
At the opening bell, the Dow Jones Industrial Average rose 58.3 points (0.11%) to 53,828.55. The S&P 500 gained 14.7 points (0.19%) to reach 7,763.18, while the Nasdaq Composite rose 42.9 points (0.16%) to 26,631.34.
Positive sentiment was driven by July Producer Price Index (PPI) data that came in lower than expected for both headline and core figures. This data aligned with the previous day's benign CPI report and helped alleviate market concerns regarding hawkish signals from certain FOMC members.
Chip stocks and companies linked to artificial intelligence (AI) infrastructure maintained the strong gains seen in the previous session. Reports that Anthropic is pursuing an IPO, alongside its acquisition of Decart AI, bolstered the outlook for computing-related spending. Micron, Oracle, and Meta rose more than 2%, while Nvidia and Amazon posted modest gains.
In terms of market impact, the lower-than-expected PPI data reinforced expectations that the Fed would hold interest rates steady, thereby supporting "risk-on" sentiment on Wall Street. Falling oil prices also helped improve investor risk appetite. If inflation data continues to cool, the S&P 500 has the potential to maintain its record-breaking momentum, particularly if technology and AI stocks remain strong. (asd)
Source: Newsmaker.id
