U.S. stocks advanced on Thursday, August 13, as softer wholesale-inflation data, falling Treasury yields, and lower oil prices eased some of the market's concern about another Federal Reserve rate increase. The S&P 500 finished at a record close, while the Nasdaq led the major indexes higher.
Market at a Glance
| Index | Close | Daily change |
|---|---|---|
| S&P 500 | 7,798.99 | +50.49 (+0.7%) |
| Nasdaq Composite | 26,803.03 | +214.54 (+0.8%) |
| Dow Jones Industrial Average | 53,839.99 | +69.72 (+0.1%) |
| Russell 2000 | 3,052.85 | +7.36 (+0.2%) |
The S&P 500 surpassed its previous closing high, set the prior week. The Nasdaq's stronger gain showed that growth stocks benefited most from the decline in bond yields, while the Dow and Russell 2000 posted more modest advances.
Producer Prices Reinforce the Disinflation Story
The Bureau of Labor Statistics reported that the Producer Price Index for final demand was unchanged in July on a seasonally adjusted basis, following a revised 0.1% decline in June. Producer prices were 4.7% higher than a year earlier, down from 5.5% in June.
The headline reading benefited from lower goods prices. Final-demand goods fell 0.7%, including a 3.1% decline in energy and a 5.7% drop in gasoline. Services rose 0.2%, while the measure excluding food, energy, and trade services increased 0.4% for the month and 4.7% from a year earlier.
The report did not show that inflation had disappeared; underlying producer-price pressure remained visible. But the flat headline reading and slower annual rate were enough to reduce immediate fears of renewed tightening. According to CME Group data cited by the Associated Press, traders assigned about a 35% probability to a September rate increase, down from roughly 50% two days earlier.
Bond Yields and Oil Move in Stocks' Favor
The 10-year Treasury yield fell to 4.65% from 4.68% on Wednesday. Lower yields reduce competition from bonds and can support equity valuations, particularly for technology and other growth companies whose expected earnings lie further in the future.
Brent crude dropped 2.1% to $87.07 per barrel. Oil has been volatile amid uncertainty surrounding the war with Iran and the movement of tankers through the Middle East. Thursday's decline helped alleviate near-term energy-inflation concerns, complementing the softer headline PPI reading.
Taken together, lower producer inflation, Treasury yields, and crude prices created a favorable macro backdrop for stocks. That is an interpretation of the day's price action rather than a guarantee that the trend will persist.
Real Estate Rallies, Cisco Falls
Real-estate shares were among the stronger areas of the market as yields declined. Lower bond yields can make the dividends offered by real-estate investment trusts relatively more attractive. AvalonBay Communities gained 2.3%, while homebuilder D.R. Horton rose 2.8% after the average long-term U.S. mortgage rate declined for the first time in six weeks.
Fossil Group climbed 5.9% after reporting quarterly results that exceeded analysts' expectations. Cisco Systems moved in the opposite direction, falling 8.4% despite reporting stronger-than-expected profit and revenue. The Associated Press reported that concern about future profit margins weighed on the shares.
The contrast is a reminder that positive headline earnings are not always sufficient when valuation and forward-margin expectations are demanding.
What Investors Should Watch Next
The record close confirms that buyers remain willing to support equities when inflation and rate expectations improve. Market breadth was positive but uneven: the Nasdaq and S&P 500 outpaced the Dow and small-cap Russell 2000, suggesting that the session still leaned toward large growth companies rather than a comprehensive risk rally.
The next important questions are whether Treasury yields continue to retreat, whether oil can remain below its recent highs, and whether gains broaden beyond large-cap growth and rate-sensitive real estate. Investors should also watch incoming economic data for evidence that easing inflation is occurring without a sharper deterioration in demand.
For now, the verified facts support a constructive reading of the session: all four major indexes gained, the S&P 500 reached a record, and two significant sources of inflation pressure—producer prices and oil—moved in a market-friendly direction. The durability of that combination remains uncertain.
Sources
- U.S. Bureau of Labor Statistics: Producer Price Indexes—July 2026
- Associated Press: U.S. stocks rise to a record as oil prices drop and inflation improves
- Associated Press: How major U.S. stock indexes fared Thursday
Market data reflects the U.S. regular trading session on August 13, 2026. This article is for informational purposes only and is not investment advice.