US stocks ended higher on Thursday, with the S&P 500 closing at a fresh record as easing inflation data, falling oil prices and continued strength in technology shares lifted investor sentiment.
The S&P 500 rose 0.66% to close at 7,799.73 after briefly crossing the 7,800 mark for the first time during the session.
The Nasdaq Composite gained 0.81% to 26,803.51, while the Dow Jones Industrial Average added 70.91 points, or 0.13%, to finish at 53,833.87.
Technology stocks led the advance, with gains in Meta Platforms (META), Broadcom (AVGO), Micron Technology, SanDisk and Netflix helping push the broader market higher.
The benchmark S&P 500 has now gained about 14% in 2026, while the Nasdaq is up roughly 15% for the year.
Softer inflation reinforces Fed pause expectations
Investor sentiment received another boost after fresh inflation data suggested price pressures remained contained.
The US Producer Price Index was unchanged in July, below economists' expectations for a 0.2% monthly increase.
Core producer prices, which exclude food and energy, rose 0.2%, slightly below forecasts of 0.3%.
The report followed Wednesday's Consumer Price Index data, which showed headline inflation rising 0.1% in July, in line with expectations.
The combination of the two reports strengthened expectations that the Federal Reserve will leave interest rates unchanged at its September policy meeting.
According to CME FedWatch data, traders were pricing in roughly a 63% probability that policymakers will hold rates steady.
Economic data released on Thursday also showed weekly jobless claims increased modestly, pointing to a labor market that remains relatively stable despite signs of slowing economic activity.
Meanwhile, Brent crude futures settled about 2% lower at $87.07 a barrel as investors weighed weaker global demand expectations even as geopolitical tensions between the United States and Iran continued.
Lower oil prices also helped improve overall market sentiment.
Technology stocks extend AI-driven rally
Technology shares remained the primary driver of the market's advance as investor confidence in artificial intelligence spending continued to improve.
Recent earnings and optimistic forecasts from major technology companies, including Microsoft (MSFT) and Amazon (AMZN), have eased concerns surrounding heavy investments in AI infrastructure and data centers.
Memory-related stocks outperformed after SanDisk outlined an ambitious long-term growth strategy during its investor day. SanDisk shares surged sharply, while Micron Technology (MU) also posted strong gains.
Broadcom and Meta Platforms added to the sector's strength.
Netflix (NFLX) advanced after billionaire investor Bill Ackman's Pershing Square (PSHZF) disclosed a new position in the streaming company as part of its largest portfolio reshuffle in years.
Earnings drive mixed moves across sectors
Corporate earnings continued to generate notable stock-specific moves.
Cisco Systems fell about 9% after investors reacted negatively to its quarterly results despite the company issuing an upbeat revenue outlook.
AI chip designer Cerebras also declined sharply following its earnings report, while optical networking company Coherent (COHR) moved lower after releasing its latest results.
Outside the technology sector, Tapestry (TPR) dropped after the Coach owner projected muted annual revenue growth.
Meanwhile, Dell Technologies and HP (HPQ) gained after China's Lenovo (LNVGY) reported quarterly results that exceeded expectations, providing a boost to broader PC industry sentiment.
With the earnings season nearing its end and most S&P 500 companies having already reported quarterly results, investor attention is expected to remain focused on upcoming economic data, Federal Reserve policy expectations and whether corporate earnings can continue supporting the market's record-setting rally.
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