S&P 500 marks third consecutive day of gains

In Short:
– Stocks saw modest gains; S&P 500 closed at a record high of 6,468.54.
– Inflation report raised concerns, but traders expect a 93% chance of a September rate cut.

Stocks made modest gains despite a poor inflation report. The S&P 500 achieved its third consecutive record close, rising 0.03% to 6,468.54.

The Nasdaq Composite fell slightly by 0.01% to 21,710.67, and the Dow Jones decreased by 0.02% to end at 44,911.26.Both the S&P and Nasdaq had earlier dipped 0.4%. The declines were influenced by July’s producer price index (PPI) results, which indicated that a Federal Reserve rate cut is uncertain.

Wholesale prices rose 0.9%, exceeding the expected 0.2%. This may signal potential consumer price increases.

Some traders dismissed the PPI report as increases stemmed from high gains in “portfolio management” and airfare.

The Fed funds futures still indicated a 93% chance for a rate cut in September, only slightly less than before.

Traders’ Sentiment

Scott Ladner from Horizon Investments commented that the inflation numbers alone are insufficient to alter the Fed’s course on rate cuts.

He explained the need for more data before drawing conclusions about inflation accelerating.