S&P 500 Closes at Record 7,799 After Two Straight Days of Soft Inflation Data Ease Fed Hike Fears

The S&P 500 closed at a record high of 7,799 on August 13 after two consecutive days of softer-than-expected inflation readings, with July producer price data joining the prior day's consumer inflation report in easing fears that the Federal Reserve would raise interest rates at its September meeting. Technology stocks led the advance, with Sandisk among the heavyweights driving gains, and Workday surged 18% following its own results. Tapestry, the owner of Coach, was a notable decliner.

Crude oil prices fell on the day, adding to the disinflationary tone. The soft PPI print also lifted rate-cut hopes more broadly, weakening the dollar and allowing the New Zealand dollar to recover from a two-week low. Gold pulled back toward $4,300 as traders reassessed the Fed's path.

In Asia, markets extended the rally into Friday, with the Nikkei 225 climbing 1.8% to 69,523.56 and SoftBank Group jumping 5.3% in early Tokyo trade. Asian stocks were on course for a weekly gain on fading US rate-hike bets, though analysts noted the Bank of Japan remained a potential headwind given its own rate-hike trajectory. Investor's Business Daily reported the session triggered a bullish stock market upgrade.