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US equities reach new highs on 0.7% S&P gain, Brent drops 2.1% and PPI inflation slows to 4.7% YoY, easing rate‑cut hopes.
The S&P 500 closed at a fresh all‑time high of 7,798.99, up 0.7% on Thursday, as wholesale‑price inflation slowed to 4.7% year‑over‑year and Brent crude fell 2.1% to $87.07 a barrel【1】.
| At a glance | |
|---|---|
| S&P 500 close | 7,798.99 (+0.7%) |
| Dow Jones close | 53,839.99 (+0.1%) |
| 10‑yr Treasury yield | 4.65% (down from 4.68% prior day) |
| Brent crude price | $87.07 (‑2.1%) |
The producer‑price index (PPI) reported a 4.7% increase YoY for the month, easing from June’s 5.5% pace and beating analysts’ expectations by a modest margin【1】. The softer reading lowered the probability that the Federal Reserve will hike rates at its September meeting to 35%, down from roughly 50% two days earlier, according to CME Group data【1】. With rate‑cut odds rising, Treasury yields slipped, the 10‑year yield falling to 4.65% from 4.68% on Wednesday and 4.72% on Monday【1】. Lower yields reduce the cost of borrowing and support equity valuations, helping the major indexes to post record closes.
Brent crude retreated 2.1% to $87.07 as the market digested mixed signals about the Strait of Hormuz, where recent Iranian and U.S. claims have kept supply uncertain【1】. The price swing limited inflation concerns and boosted risk‑on sentiment. Real‑estate stocks led the gains, with AvalonBay Communities up 2.3% and homebuilder D.R. Horton rising 2.8%, reflecting expectations of lower mortgage rates and more attractive REIT dividends when bond yields fall【1】. Fossil Group jumped 5.9% after beating analysts’ earnings forecasts, while Cisco Systems fell 8.4% despite a strong earnings report, as investors worried about future margin pressure and AI‑related valuation risks【1】.
European markets opened lower, while South Korea’s Kospi surged 3.6%, driven by AI‑heavy giants Samsung Electronics and SK Hynix【1】. The divergent moves underscore the continued influence of regional geopolitical and sector‑specific factors on global equity flows.
The record equity close shows how a modest easing in wholesale inflation and a retreat in oil prices can quickly shift market expectations on monetary policy, but the outlook remains vulnerable to any resurgence in oil‑price volatility or a surprise Fed move.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 4 outlets · Aug 14, 2026 · How we report
Inflation is a broad-based and persistent increase in the general price level, whereas a rise in the price of a specific good is a relative price change often driven by sector-specific supply and demand imbalances.
The Federal Reserve monitors inflation to maintain economic stability, as it must balance the need to control price increases with its mandate to support maximum employment.
The quantity theory of money is expressed by the equation MV=PQ, suggesting that when the money supply (M) grows faster than the volume of output (Q), the price level (P) must rise.
While factors like supply disruptions, fiscal stimuli, or wage-price spirals can create transient price pressures, sources indicate that persistent, long-term inflation is fundamentally driven by monetary policy.