The S&P 500 notched its 27th record close of 2026 above 7,800 on Thursday and the Russell 2000 – the benchmark for small caps – also marked fresh all-time highs as strong earnings and benign inflation data cooled fears of an imminent Fed rate hike.
Cool Inflation Data Took A September Hike Off The Table The consumer price index rose 0.1% in July and 3.4% annually, a tick below June's 3.5% and in line with consensus.
Producer prices did better than that: flat on the month against expectations of a 0.2% gain, with the annual rate decelerating to 4.7% from 5.5%.
Rate-hike pricing collapsed on the back of it.
Futures put the probability of a September increase near 25% by Friday, down from above 60% in the first days of August.
