S&P 500 Closes at Record 7,798.99 After July PPI Comes in Flat

The S&P 500 closed at an all-time high of 7,798.99 on Thursday, August 13, gaining 0.65%, after the July Producer Price Index came in unchanged on a monthly basis, with goods prices falling 0.7% offsetting a 0.2% rise in services. That marked a second consecutive day of soft inflation data and lifted hopes that the Federal Reserve, under Chairman Kevin Warsh, will extend its run of rate-hike pauses through the September meeting. Year-over-year PPI stood at 4.7%, but markets focused on the monthly flatness as evidence that energy-driven pressures may be beginning to ease.

The Nasdaq Composite advanced 0.81% to 26,803.03, driven by a 16% surge in Sandisk, a 6.7% gain in Micron Technology, and rises in Meta Platforms and Broadcom. The Dow added 0.13%, or 69.72 points, to 53,839.99. The Russell 2000 also closed at a record.

Falling oil prices added to the bullish tone, with Brent crude shedding more than 2% to $87.07 a barrel and West Texas Intermediate dropping to $81.25, as traders weighed demand concerns amid the ongoing U.S.-Iran conflict. On the earnings front, Workday soared roughly 18% after strong results, while Tapestry, the parent of Coach and Kate Spade, tumbled despite a slight revenue beat, and Cisco fell after its first-quarter gross margin guidance of 65% to 66% came in below the Street consensus of 66.4%. Asian markets were set for gains overnight following Wall Street's advance.