U.S. equities finished higher on Thursday, with the S&P 500 notching a fresh record close as tame inflation data, falling oil prices, and continued strength in technology shares buoyed investor sentiment. The benchmark index rose 0.66% to 7,799.73, after briefly crossing the 7,800 threshold for the first time during the session.
The Nasdaq Composite advanced 0.81% to 26,803.51, while the Dow Jones Industrial Average added 70.91 points, or 0.13%, to end at 53,833.87. Technology names led the charge, with gains in Meta Platforms, Broadcom, Micron Technology, SanDisk, and Netflix pushing the broader market higher.
So far in 2026, the S&P 500 has climbed roughly 14%, while the Nasdaq is up about 15%.
Cooling inflation bolsters Fed pause bets
Fresh inflation data reinforced expectations that the Federal Reserve will hold interest rates steady at its September meeting. The Producer Price Index was unchanged in July, below economists' forecasts for a 0.2% monthly increase. Core producer prices, excluding food and energy, rose 0.2%, slightly under the expected 0.3%.
This followed Wednesday's Consumer Price Index report, which showed headline inflation rising 0.1% in July, in line with projections. According to CME FedWatch, traders now price in roughly a 63% probability that policymakers will keep rates unchanged.
Thursday's economic data also showed weekly jobless claims edging up modestly, pointing to a labor market that remains relatively stable despite signs of slowing growth. Meanwhile, Brent crude futures settled about 2% lower at $87.07 a barrel, as investors weighed weaker global demand expectations even amid ongoing U.S.-Iran geopolitical tensions. Lower oil prices further improved market sentiment.
Tech stocks extend AI-driven rally
Technology shares remained the primary driver of the advance, as investor confidence in artificial intelligence spending continued to improve. Recent earnings and upbeat forecasts from major tech firms, including Microsoft and Amazon, have eased concerns about heavy investments in AI infrastructure and data centers.
Memory-related stocks outperformed after SanDisk outlined an ambitious long-term growth strategy during its investor day, sending its shares sharply higher. Micron Technology also posted strong gains, while Broadcom and Meta Platforms added to the sector's strength. Netflix advanced after billionaire investor Bill Ackman's Pershing Square disclosed a new position in the streaming company as part of its largest portfolio reshuffle in years.
Earnings drive mixed moves across sectors
Corporate earnings continued to generate notable stock-specific moves. Cisco Systems fell about 9% despite issuing an upbeat revenue outlook, as investors reacted negatively to its quarterly results. AI chip designer Cerebras also declined sharply following its earnings report, and optical networking company Coherent moved lower after releasing its latest numbers.
Outside technology, Tapestry dropped after the Coach owner projected muted annual revenue growth. Meanwhile, Dell Technologies and HP gained after China's Lenovo reported quarterly results that exceeded expectations, providing a boost to broader PC industry sentiment. The strong Lenovo results also underscored robust AI server demand, a theme that has been lifting related stocks.
With the earnings season nearing its end and most S&P 500 companies having already reported, investor attention is expected to remain on upcoming economic data, Federal Reserve policy expectations, and whether corporate earnings can continue supporting the market's record-setting rally. As cooling inflation masks labor market cracks, traders will be watching for any signs of weakness in the jobs data.
This article is for informational purposes only and does not constitute financial advice.
