Key facts
- The S&P 500 achieved a new intraday record high on Thursday.
- Technology stocks, particularly Microsoft, Nvidia, and Apple, drove the market's advance.
- Falling crude oil prices and weaker-than-expected producer price inflation data improved investor sentiment.
- July producer price inflation rose 4.7%, below the 4.9% expectation.
- Market participants increased their expectations for the Federal Reserve to maintain current interest rates.
The S&P 500 index reached an intraday record high on Thursday, driven by a resurgence in technology stocks. Investors showed renewed interest in Big Tech companies like Microsoft, Nvidia, and Apple, which saw gains of 1.4%, 0.6%, and 0.5% respectively. This rally occurred as crude oil prices retreated by 2.2%, easing concerns about global demand and contributing to a more positive market sentiment.
Adding to the favorable market conditions, producer price inflation data for July came in softer than anticipated, rising by 4.7% against expectations of 4.9%. This followed benign consumer inflation figures, strengthening the view that the Federal Reserve may hold interest rates steady at its upcoming meeting. Traders are now pricing in a 65% chance of a rate hold, up from 60% prior to the inflation data release.
The Nasdaq Composite also benefited from the tech sector's strength, gaining 0.92% to reach 26,832.54, though it remained about 1.5% below its all-time peak. The Dow Jones Industrial Average edged higher by 0.36% to 53,960.29, hovering near its own record high, with financial and healthcare stocks providing support.
However, not all companies saw positive movement. Dow component Cisco Systems fell 7.4% despite forecasting fiscal 2027 revenue above expectations. Tapestry shares plunged 15% after the company provided an upbeat annual earnings forecast. Conversely, PC makers Dell Technologies and HP saw gains of 2.5% and 4% respectively, following better-than-expected earnings from China's Lenovo.