S&P 500 notches record-high close as rate-hike worries ease

Wall Street reached a milestone on Thursday, Aug 13, 2026, as the S&P 500 notched a record-high close. The market advance was largely fueled by heavyweight technology stocks and memory chip makers, buoyed by economic indicators pointing toward a stable jobs market and easing inflation concerns that lowered expectations of an immediate interest rate hike by the Federal Reserve.

The broad market index climbed 0.65% to end the Thursday session at 7,798.99 points, surpassing its previous record high close set the prior week, according to primary reporting from Aol. Simultaneously, the tech-heavy Nasdaq Composite gained 0.81% to reach 26,803.03 points, and the Dow Jones Industrial Average rose 0.13% to finish at 53,839.99 points.

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The primary driver behind the positive sentiment in the main reports was fresh economic data indicating that U.S. Producer prices were unchanged in July as goods prices fell and the cost of services increased only marginally. This tame producer price inflation followed a favorable consumer inflation report, prompting traders to scale back expectations of monetary tightening. According to CME's FedWatch tool cited by Free Malaysia Today, traders are pricing in a 63% probability that the Fed will keep interest rates unchanged at its upcoming meeting in September. Additionally, weekly jobless claims data showed a moderate increase in Americans filing for unemployment benefits, pointing to a stable yet cooling labor market.

Technology and artificial intelligence sectors played a central role in the market's ascent. Memory chip makers Sandisk and Micron Technology surged 13.7% and 4.2% respectively, while Microsoft added almost 1% and Meta Platforms rose 2.8%. Strong corporate forecasts in recent weeks have successfully mitigated investor anxieties regarding massive capital expenditures on AI data centers. Jay Hatfield, CEO of Infrastructure Capital Advisors in New York, told Aol that the technology boom driven by artificial intelligence earnings is continuing, describing it as an earnings boom rather than a bubble.

Corporate earnings brought sharp divergences among individual equities. Netflix shares climbed 5.4% after billionaire investor Bill Ackman unveiled a new holding in the streaming company as part of a major portfolio overhaul by Pershing Square. Conversely, shares of the Coach owner plummeted after the company issued a muted annual revenue growth forecast, and Cisco Systems dropped 8.4% despite reporting an upbeat revenue forecast that failed to satisfy investors' lofty expectations. European markets also experienced varied conditions, with the pan-European Stoxx 600 closing little changed as investors weighed a strong regional earnings season against ongoing uncertainty in the Middle East, according to The Business Times.

Geopolitical tensions continued to cast a shadow over global commodity markets. Iran and the United States remained at loggerheads over efforts to agree on a permanent end to the ongoing conflict, leaving traffic through the vital Strait of Hormuz severely curtailed, according to a senior Iranian source cited by Aol.

Market Snapshot and Key Indicators

• S&P 500: Rose 0.65% to close at 7,798.99 points.
• Nasdaq Composite: Gained 0.81% to finish at 26,803.03 points.
• Dow Jones Industrial Average: Added 0.13% to reach 53,839.99 points.
• Interest Rate Outlook: Traders priced in a 63% chance of the Fed holding rates steady in September.

As the market navigates the remainder of August—historically a volatile month for equities, as noted by Clark Bellin, president and chief investment officer at Bellwether Wealth, in coverage highlighted by The Globe and Mail—attention turns immediately to upcoming macroeconomic releases. Markets are awaiting the official euro zone inflation data scheduled for Friday, which will provide further clues regarding the European Central Bank's monetary policy path, alongside broader updates on international trade, commodity supplies, and corporate earnings trajectory.