The S&P 500 closed at a record high on Thursday as softer US producer price data eased concerns over another Federal Reserve rate hike next month, while heavyweight technology stocks continued to drive the market higher.
The S&P 500 rose 0.65% to close at 7,798.99 points, surpassing its previous record close from last Friday. The Nasdaq gained 0.81% to 26,803.03 points, while the Dow Jones Industrial Average added 0.13% to 53,839.99 points.
The rally came after US producer prices were unchanged in July, with goods prices falling and services costs rising only marginally. The data strengthened expectations that the Fed could leave interest rates unchanged at its September meeting.
Markets are now pricing in a 63% probability of the Fed keeping rates unchanged next month, according to CME’s FedWatch tool.
Technology stocks led the advance, with memory chipmakers Sandisk and Micron Technology rising 13.7% and 4.2% respectively. Microsoft gained nearly 1% while Meta Platforms climbed 2.8%.
The continued strength in technology stocks also reflects growing investor confidence in artificial intelligence spending, with strong forecasts from major technology companies helping to ease concerns over the scale of investment in AI data centres.
The S&P 500 is now up around 14% in 2026, while the Nasdaq has gained about 15%.
Seven of the 11 S&P 500 sector indexes ended higher, led by communication services which rose 1.56%, followed by real estate with a 1.34% gain.
Elsewhere, Dell Technologies rose 2.1% and HP gained 6.9% after Lenovo’s quarterly results beat expectations, while Netflix advanced 5.4% after billionaire investor Bill Ackman disclosed a new holding in the streaming company.
Not all stocks joined the rally. Cisco Systems fell 8.4% after its upbeat revenue forecast failed to meet investor expectations, while Tapestry plunged more than 16% after forecasting muted annual revenue growth.
Brent crude oil futures fell about 2% to close at US$87.07 a barrel.
