U.S. stocks finished higher on Thursday, with the S&P 500 closing at a fresh record of 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 settle at 53,833.87.
Technology stocks led the advance. Investors returned to large technology and semiconductor names, with gains in Meta Platforms, Broadcom, Micron Technology, SanDisk, and Netflix helping lift the broader market. Microsoft rose about 1.4%, Nvidia added 0.6%, and Apple gained roughly 0.5%, pushing the S&P 500 information technology sector up about 1%. The Philadelphia Semiconductor Index climbed around 2.5% as enthusiasm around AI infrastructure continued to support chip stocks.
The rally followed a strong earnings season and increasingly optimistic forecasts from major technology companies. J.P. Morgan recently raised its year-end S&P 500 target to 8,000, citing stronger earnings and continued investment in artificial intelligence.
Investor sentiment was also supported by softer inflation data. The U.S. Producer Price Index was unchanged in July, below expectations for a 0.2% monthly increase, while annual PPI inflation slowed to 4.7% from 5.5% in June. Core producer prices, excluding food and energy, rose 0.2%, slightly below forecasts of 0.3%. The report followed Wednesday's Consumer Price Index data showing headline inflation up just 0.1% in July.
The combination of the two inflation 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 at the current 3.50%–3.75% target range. Treasury yields eased after the data, while Brent crude futures settled about 2% lower at $87.07 a barrel, further improving market sentiment.
Not every stock participated in the rally. Cisco Systems fell about 7% to 9% after its quarterly results disappointed investors, while Tapestry dropped around 15% after projecting muted annual revenue growth. AI chip designer Cerebras and optical networking company Coherent also declined after earnings. In contrast, Dell Technologies and HP advanced after China's Lenovo reported quarterly results that exceeded expectations, lifting sentiment toward computer makers.
The S&P 500 has now gained about 14% in 2026, while the Nasdaq is up roughly 15% for the year. With the earnings season nearing its end, investor attention is expected to remain focused on upcoming economic data, Federal Reserve policy expectations, and whether corporate earnings can continue supporting the record-setting rally. For digital assets, the softer inflation backdrop and resilient risk appetite in equities may also be relevant for Bitcoin and the broader crypto market, which often trade in line with shifts in liquidity expectations and investor sentiment.
