US stock markets achieved historic milestones on Thursday, with the S&P 500 rising 0.05% and crossing the 7,800 mark for the first time, while the Nasdaq Composite advanced 0.13% and the Dow Jones Industrial Average declined 0.04%. According to Business Standard, Wall Street climbed to all-time highs following the latest sign that inflation is getting less bad. The positive momentum was driven by crude oil prices declining and softer-than-expected producer price inflation data, with the Nasdaq Composite advancing 0.8% leading sector gains. This represents a continuation of the positive trend from earlier sessions, with markets surging toward record highs as investors gain confidence in the economic outlook and the 10-year Treasury yield fell to 4.65% from 4.68% late Wednesday. The S&P 500 and Nasdaq are on track for their third consecutive weekly gains, with both benchmarks up around 0.6% so far this week.
Crude oil prices experienced significant volatility on Friday, with Brent crude initially jumping nearly 2% before reversing the move and trading around $87 a barrel. As per CNBC TV18, Brent crude futures fell about 2% to $86.98 a barrel on Thursday, while West Texas Intermediate futures dropped 2% to $81.14 a barrel. Oil prices declined as markets weighed softer demand expectations amid the ongoing US-Iran conflict. The oil market volatility that characterized recent sessions, including the Brent crude futures briefly jumping above US$90 before falling back below US$87, has shown some stabilization, supporting broader market sentiment. Brent crude fell 3.3% to $86.02 a barrel on Thursday, with oil prices remaining highly volatile in recent weeks as optimism and pessimism over a possible resolution to the conflict repeatedly shifted expectations about when oil tankers could resume unrestricted movement through the Middle East and restore global crude supplies.
Investors were encouraged by the latest reading on wholesale inflation, with the US producer price index (PPI) decelerating in July from a year earlier by more than estimated, helped by a further decline in energy and food costs. According to Business Standard, the Producer Price Index rose 4.7% from July 2025 after a 5.5% annual increase in June, while on a month-over-month basis, the PPI was unchanged. This softer inflation reading helped ease concerns about potential Federal Reserve policy tightening. The 10-year Treasury yield has been easing back from elevated levels reached during the war with Iran, with the yield showing signs of stabilization as inflation worries moderate. The yield on the benchmark 10-year Treasury note declined to 4.65% from 4.68% late Wednesday and 4.72% on Monday, providing additional support to equities. The latest wholesale inflation figures, coming a day after softer consumer inflation data, have reduced expectations of an imminent rate hike. According to CME Group data, traders now see only a 35% probability that the Fed will raise its benchmark interest rate at its September meeting, down from roughly 50% just two days earlier. If the central bank does decide to raise rates, it would mark the first increase in more than three years.
The Nasdaq Composite advanced 0.13%, helped by strong gains in major technology stocks including Meta Platforms, Microsoft and Netflix. As per CNBC TV18, this sector performance contributed significantly to the overall market gains, with technology stocks leading the charge higher. The S&P 500 rose 0.05%, while the Nasdaq was up 0.13%, reflecting the broad-based nature of the technology sector's strength. Technology and communication services were among the strongest-performing sectors, with both gaining roughly 1% on Thursday as investors continued to favour large technology stocks. The Nasdaq's gains on Friday were again supported by semiconductor stocks, as investors continued to pile into companies seen as key beneficiaries of the artificial intelligence investment boom. SanDisk was among the biggest movers in early trading, hitting a high of $1,646, representing a gain of 7.7% from the previous close after JPMorgan upgraded SanDisk to overweight, citing strong demand for memory linked to the artificial intelligence boom. SanDisk has surged roughly sixfold in 2026, highlighting the strength of the current AI-driven semiconductor rally. However, corporate earnings were also in focus, with several AI and technology-related stocks coming under pressure following their results.
The gains in technology stocks came despite disappointing US retail sales data, with US retail sales falling 0.6% in July from the previous month, sharply missing economists' expectations for a 0.1% increase. According to CNBC TV18, excluding automobiles, retail sales declined 0.3%. Despite the retail sales weakness, the broader market sentiment remained positive, supported by the continued strength in technology and semiconductor stocks. The Bloomberg Dollar Spot Index fell 0.3%, with the euro rising 0.3% to $1.1568 and the British pound gaining 0.4% to $1.3539. The Japanese yen strengthened 0.4% to 158.84 per dollar. In cryptocurrencies, Bitcoin fell 0.9% to $62,780.87. The 10-year Treasury yield has been easing back since the war with Iran due to the softer inflation data and improved market risk appetite, with the yield showing signs of stabilization as inflation worries moderate.
