The S&P 500 broke above 7,800 for the first time on August 13, pushing the index's total value to a record $70.8 trillion, after July producer price data came in cooler than markets expected. The Bureau of Labor Statistics' Producer Price Index report showed headline PPI easing to 4.7% year-over-year, below the 4.9% forecast and down sharply from 5.5% in June, while core PPI cooled to 4.2%. Month-over-month PPI was flat at 0.0%, the first such reading since June 2025.
The Nasdaq 100 reclaimed 30,000 for the first time in 43 days and the Russell 2000 also touched a fresh record, with roughly $700 billion added to US equities on the day and close to $5 trillion added over the preceding 15 trading sessions. Tech-sector strength underpinned much of the move: 75% of S&P 500 technology stocks finished the prior week above their 200-day moving average, the highest share since October 2024 and the first time that threshold was cleared in 219 trading days.
Rate-cut odds shift, but not everyone agrees
The cooler inflation print reshaped Fed expectations quickly: the probability markets assign to a rate hike at the September 16 FOMC meeting fell to about 34%, down from roughly 55% a week earlier. Not every Fed official is on board with easing, however — Cleveland Fed President Beth Hammack said the central bank should raise interest rates immediately to restrain growth and bring inflation back toward its 2% target, a dissenting view that stands out against the market's dovish repricing.
Crypto stayed on the sidelines
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Bitcoin's reaction to the rally was muted by comparison, slipping roughly 0.14% to trade near $63,500 even as equities notched records — a reminder that the softer-inflation, lower-rate narrative currently driving stocks hasn't translated into the same enthusiasm for crypto markets. Whether that gap closes if the Fed does shift toward cuts in September is likely to be one of the more closely watched dynamics heading into the fall.
