S&P 500 Tops 7,800 for the First Time as Flat PPI Seals Rate-Hold Bets

The S&P 500 climbed 0.65% Thursday to a record close of 7,798.99 after crossing 7,800 intraday for the first time, touching an all-time high of 7,816.70. The rally was powered by semiconductors and heavyweight technology names, with a retreat in crude prices adding fuel after a week dominated by energy-driven inflation fears.

The catalyst was July's Producer Price Index, which came in unchanged against forecasts for a 0.2% rise — the second benign inflation print in as many days. Futures markets lifted the odds of a Federal Reserve rate hold next month to about 65% from 60% before the report, while bond yields eased from their recent highs.

Friday's session opened quietly, with S&P 500 futures roughly flat and Asian markets extending a fourth straight week of gains. For diversified portfolios, back-to-back records with cooling inflation is a supportive backdrop heading into next week's retail earnings.