S&P 500 hits all-time high on cooler producer prices, falling oil

US stocks rose across the board Thursday, lifted by a cooler-than-expected producer price reading and a drop in crude oil prices. The S&P 500 closed at a fresh all-time high.

The S&P 500 ended the session at 7,798.99 on the New York Stock Exchange, up 50.49 points, or 0.65 percent, from the previous close.

The Dow Jones Industrial Average gained 69.72 points, or 0.13 percent, to finish at 53,839.99, while the tech-heavy Nasdaq Composite rose 214.54 points, or 0.81 percent, to close at 26,803.03.

The rally was driven largely by a softer-than-forecast producer price report. The Ministry of Employment and Labor said the producer price index for July was flat month-on-month, falling short of the 0.2 percent increase the market had expected. The year-on-year gain also slowed to 4.7 percent from 5.5 percent in June.

The tame PPI reading eased concerns that inflation could re-accelerate — fears that had grown in recent weeks amid elevated oil prices. It also reduced market wariness over the possibility that the Federal Reserve could raise its benchmark interest rate in September.

Falling crude oil prices further boosted investor sentiment. Oil had surged on tensions in the Middle East, but its retreat eased worries that rising energy prices could push US inflation higher again.

Technology stocks led the advance. Semiconductor shares, including SanDisk and Micron Technology, posted sharp gains, and major tech names such as Meta Platforms also rose.