S&P 500 Hits Record Close as Soft US PPI Data Dims Fed Rate-Hike Fears

The S&P 500 closed at a record high after tame US producer price inflation data reinforced market expectations that the Federal Reserve will hold rates steady at its September meeting. Technology stocks led the advance, with Sandisk among the notable gainers. The rally spread into Asian markets, where the Nikkei 225 climbed 1.8% to 69,523.56 in early Friday trade, with SoftBank Group surging 5.3% as easing US rate-hike concerns lifted sentiment toward high-growth technology names.

Asian stocks were also on track for a weekly gain broadly, driven by the fading rate-hike wagers. The US dollar weakened on the softer inflation outlook, helping the New Zealand dollar recover from a two-week low. Gold retreated toward $4,300 as traders reassessed the Fed path, while Bitcoin slipped even as Ethereum, XRP, and Dogecoin edged higher.

The yen showed signs of consolidation and could find further support from prospects of a Bank of Japan rate hike, a dynamic that could temper the Nikkei rally. Separately, fast-money traders began pricing in a November rate hike by the Reserve Bank of Australia as that central bank continues its own fight against inflation.