US stocks rose on Thursday, August 13, with the S&P 500, Nasdaq Composite and Dow Jones Industrial Average gaining as falling oil prices and softer-than-expected producer inflation likely provided relief to investors over US Federal Reserve's policy stance.
The S&P 500 advanced 0.5%, the Nasdaq Composite climbed 0.6%, driven by gains in Meta Platforms, Microsoft and Netflix. The Dow Jones Industrial Average gained132 points, or 0.3%.
The rally comes after US producer price index (PPI) rose 4.7% from July 2025 afollowing 5.5% annual increase in June, according to Bureau of Labor Statistics data out Thursday. PPI remained unchanged on a month-over-month basis.
Excluding food and energy, producer prices jumped 4.2% from a year ago and 0.2% compared with June.
Based on Thursday's data, energy prices dropped 3.1% from June, the second consecutive decline, while food prices dropped by the most since the beginning of the year.
Meanwhile, CPI for the month of July fell to 3.4% YoY from 3.5%, according to data released on Wednesday, August 12.
What is the possibility of Fed hiking rates?
Federal Reserve appears to have more time to determine cost pressures in the upcoming policy meetings as the US wholesale inflation remained below estimates with drop in energy and food costs.
Softer inflation data has reduced near-term likelihood of US Federal Reserve tightening risks, with September hike expectations now stand around 34.4% and 65.6% chances rates remaining unchanged, as of Thursday, August 13, according to CME data.
The central bank is scheduled meet next month from September 15–16, 2026.
Today's PPI data will hold particular interest to the Fed as they indicate into its preferred inflation gauge, the personal consumption expenditures price index. Additonally, the Bureau of Economic Analysis is expected to release July PCE price data on August 26, another indicator which will be considered by the Fed. Citing economists at Citigroup Inc., Morgan Stanley and Jefferies, Bloomberg News reported that the July core PCE price is projected to rise 0.2%.
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