by Coinstrooper Crypto Articles
Quick Take
  • The S&P 500 closed at a record high on Thursday, lifted by a flat July producer price report.
  • The reading further eased worries about a Federal Reserve rate hike next month.
  • The benchmark index rose 0.65% to close at 7,798.99, after touching an intraday all-time high of 7,816.70.
  • It marked the index’s 27th record close of the year.

What Happened

Workday shares jumped 18% after Reuters reported that Silver Lake is in talks to acquire the company. The private equity firm’s deal could value the human-resources software maker near $43 billion. The talks are ongoing, and sources cautioned no agreement is guaranteed.

Netflix climbed 5.4% after investor Bill Ackman disclosed a new stake in the streaming company. Tapestry shares plunged more than 16% on a muted revenue forecast.

Market Context

The S&P 500 closed at a record high on Thursday, lifted by a flat July producer price report. The reading further eased worries about a Federal Reserve rate hike next month.

The Bureau of Labor Statistics said the Producer Price Index for final demand was unchanged in July. Economists had forecast a 0.2% rise.

Annual producer-price growth slowed to 4.7% from 5.5% in June. That followed Wednesday’s Consumer Price Index report. Prices rose just 0.1% for the month and 3.4% over the past year.

Jay Hatfield, chief executive of Infrastructure Capital Advisors, said.

Why It Matters

Not everyone is convinced the Fed is done tightening. BofA still expects three more Fed hikes, arguing the disinflation trend remains incomplete.

Traders now put a 63% chance on the Fed holding rates steady in September, according to CME’s FedWatch tool. That marks a sharp shift from expectations a month ago that favored another hike.

Chipmakers Sandisk and Micron Technology surged 13.7% and 4.2%. The move extended a run that has made semiconductor names this year’s biggest gainers. Cisco Systems dropped 8.4% despite an upbeat revenue forecast that fell short of high expectations.

Thursday’s record extends a run that JPMorgan and CFRA recently flagged for rising complacency risk. Hedging demand now sits near multi-month lows.

Details

The benchmark index rose 0.65% to close at 7,798.99, after touching an intraday all-time high of 7,816.70. It marked the index’s 27th record close of the year. The Nasdaq Composite gained 0.81% to 26,803.03, and the Dow added 0.13% to 53,839.99. The S&P 500 is up over 14% in the last six months.

Inflation Keeps Cooling

Rally Broadens Beyond Tech

Communication services led Thursday’s gains, up 1.56%, followed by a 1.34% advance in real estate. Both sectors are sensitive to borrowing costs.

“The AI earnings-driven tech boom continues. It’s an earnings boom, not a bubble.”

One more inflation print lands before the Fed’s September decision. The rally’s foundation is not yet settled.

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