Dow rises, S&P 500 closes at record high on softer inflation and tech gains

• The S&P 500 rose 0.66% to a record 7,799.73, up 14% year-to-date, while the Nasdaq gained 0.81% to 26,803.51, up roughly 15% in 2026
• Core producer prices rose 0.2% monthly, below the 0.3% forecast, following Wednesday's CPI data showing 0.1% inflation, strengthening Fed pause expectations
• Technology stocks led gains with SanDisk surging on growth strategy, Netflix rising on Bill Ackman's new stake, while Cisco fell ~9% despite upbeat outlook as investors rotated toward AI-focused names

Market Summary: August 13, 2026

Key Market Performance

U.S. stocks rallied Thursday, with the S&P 500 reaching a record high of 7,799.73 (+0.66%), crossing the 7,800 mark for the first time. The Nasdaq Composite gained 0.81% to 26,803.51, while the Dow Jones added 0.13% to close at 53,833.87. Year-to-date, the S&P 500 has gained approximately 14%, with the Nasdaq up roughly 15%.

Inflation Data and Fed Outlook

Softer-than-expected inflation data fueled the rally. Producer Price Index (PPI) came in flat versus expectations of a 0.2% monthly increase, while core PPI rose 0.2%, below the 0.3% forecast. This followed Wednesday's Consumer Price Index showing 0.1% growth in July. The data reinforced expectations that the Federal Reserve will pause rate hikes at its September meeting, with traders pricing in a 63% probability of unchanged rates according to CME FedWatch.

Sector Performance

Technology stocks led gains, driven by continued AI infrastructure optimism. Notable movers included:

• SanDisk: Surged 15% after presenting an ambitious growth strategy at its investor day
• Netflix: Rose 4% following Bill Ackman's Pershing Square disclosure of a new position
• Meta Platforms and Broadcom: Added to tech sector strength
• Cisco Systems: Fell ~9% despite upbeat revenue outlook, as investors reacted negatively to quarterly results

Mixed earnings impacts: Tapestry dropped on muted revenue guidance, while Dell and HP gained following stronger-than-expected results from China's Lenovo.

Commodities

Brent crude fell 2% to $87.07/barrel on weaker global demand expectations despite U.S.-Iran geopolitical tensions.