Most US stock indexes fell during Friday’s trading, but the Dow Jones rose alone to record its highest levels ever.
Data released today showed that retail sales rose by 0.5% month-on-month in July in line with expectations, indicating strong US consumption despite high tariffs.
Government data yesterday showed that the US producer price index rose by 0.9% month-on-month in July, exceeding analysts’ expectations for a 0.2% reading.
Similar US data released earlier this week showed the pace of growth in the US consumer price index holding steady at 2.7% in July, below expectations for a rise to 2.8%.
The core inflation index — which excludes volatile food and energy prices — rose to 3.1% in July, higher than expectations of 3% and up from 2.9% in June.
According to the FedWatch tool, investors now see a 99% probability that the Federal Reserve will cut interest rates by 25 basis points in September, compared with 94% yesterday and 57% a month ago.
Analysts also see a 61% probability of another 25-basis-point cut in October, up from 34% a month ago, and a 51% probability of a similar cut in December, up from 25% a month ago.
As for trading, by 16:55 GMT, the Dow Jones Industrial Average had risen 0.4% (165 points) to 45,075 after hitting an all-time high of 45,203 points. The broader S&P 500 fell 0.3% (18 points) to 6,450, while the Nasdaq Composite dropped 0.5% (103 points) to 21,507.
