Record closes for US equities follow softer producer-price data, though oil prices and earnings caution may curb broad market gains.
The S&P 500 and Nasdaq closed at record levels after US producer-price inflation came in softer than expected, easing concerns over further Federal Reserve rate hikes. The gains reflect persistent optimism in equities, though traders are growing more selective amid rising risks.
Brent crude holding above $90 poses a macro threat, potentially reigniting inflation fears and pressuring growth stocks. Earnings reports have also shown weaker breadth, with large-cap declines and high expectations limiting upside even for solid results, as seen in Applied Materials’ 5% drop.
Market sentiment remains constructive but defensive shifts are emerging, suggesting caution rather than outright bearishness. Bitcoin’s struggle below $64,000 adds to near-term caution, though broader risk appetite in equities persists.