The S&P 500 closed at a record high on Thursday, climbing 0.65% to 7,798.99 points as tame producer price data eased worries the Federal Reserve will raise interest rates in September. A tech rally led by memory chipmakers and mega-cap software names drove the gain, while the Nasdaq also hit a fresh high and the Dow lagged on a Cisco slump.
The S&P 500 climbed 0.65% to end the session at 7,798.99 points, exceeding its record close from last Friday. Fresh producer price data supported bets that the Fed will hold rates steady next month.
Tech rally drives the milestone
Memory chipmakers led the charge: Sandisk surged 13.7% and Micron Technology rose 4.2%. Microsoft added almost 1% and Meta Platforms gained 2.8%, while AI cloud company CoreWeave dipped 1.3% after surging 19% a day earlier on a lifted capital-spending forecast. According to Reuters: "The AI earnings-driven tech boom continues", said Jay Hatfield, CEO of Infrastructure Capital Advisors. The S&P 500 is up about 14% in 2026, while the Nasdaq has gained about 15%.
Cooler inflation data eases rate-hike bets
U.S. producer prices were unchanged in July, and traders are now pricing in a 63% chance the Fed holds rates at its September meeting. That reading followed July's Consumer Price Index, which rose 0.1% month-over-month and 3.4% year-over-year, a slight cooldown from June's 3.5% annual pace. The federal funds rate has sat at 3.50% to 3.75% since the Fed's July 28-29 meeting, a decision the committee reached on a 9-3 vote.
Nasdaq and Dow diverge on earnings
The Nasdaq gained 0.81% to 26,803.03 points, while the Dow Jones Industrial Average rose just 0.13% to 53,839.99 points. Cisco Systems dropped 8.4% after its revenue forecast failed to satisfy investors with high expectations, weighing on the price-weighted Dow.
Elsewhere, Netflix climbed 5.4% after Bill Ackman disclosed a new stake in the streaming company. Tapestry shares plunged more than 16% after the Coach owner forecast muted annual revenue growth. Brent crude futures closed about 2% lower at $87.07 a barrel.
Sources: Investing.com, Crypto Briefing, Crypto Briefing
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