Highlights
Major stock indexes rose again Thursday in a broad risk-on move after a second consecutive seemingly benign US inflation report sent market interest rates lower. The Dow Jones industrial average firmed 0.1 percent, the S&P 500 rose 0.7 percent, and the Nasdaq gained 0.8 percent. US bond yields, the dollar and oil prices all moved down. The S&P was headed for a record closing high.
Declining bond yields came as the producer prices report matched expectations, as did Wednesday’s consumer price report, which relieved worries that an upside inflation surprise would spur a Federal Reserve rate increase in September. The benign results are seen delaying any rate increase and added to bets that rates would stay on hold through year end.
Lower market rates helped megacaps and other growth/momentum favorites outperform, especially big technology shares including the big leading AI names. Best sectors were communications services, technology, consumer staples and real estate. Lagging were materials, health care, and energy, which was hurt by lower oil prices despite a lack of news from the Middle East.