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

• The S&P 500 gained 0.66% to a record close while the Nasdaq rose 0.81%; both indexes are up approximately 14-15% year-to-date in 2026
• Technology stocks led gains with SanDisk surging on growth strategy, Netflix rising on Bill Ackman's new position, and Meta and Broadcom adding strength to the AI-driven rally
• Cisco Systems dropped roughly 9% despite upbeat guidance, while falling Brent crude prices to $87.07 per barrel helped improve overall market sentiment

Market Summary: S&P 500 Hits Record on Softer Inflation, Tech Leadership

Key Market Performance

U.S. equities rallied Thursday, with the S&P 500 gaining 0.66% to close at a record 7,799.73, briefly crossing 7,800 intraday. The Nasdaq Composite added 0.81% to 26,803.51, while the Dow Jones rose 0.13% to 53,833.87. Year-to-date, the S&P 500 is up approximately 14%, with the Nasdaq advancing 15%.

Inflation Data and Fed Implications

Producer Price Index (PPI) data showed inflation remaining contained, with core prices rising 0.2% monthly, below the 0.3% forecast. This followed Wednesday's Consumer Price Index showing 0.1% headline inflation growth. The softer data reinforced expectations for a Federal Reserve rate pause in September, with CME FedWatch pricing in a 63% probability of unchanged rates.

Technology Sector Leadership

Tech stocks drove the rally, led by Meta Platforms, Broadcom, and Netflix. SanDisk surged 15% after presenting an ambitious long-term growth strategy at its investor day. Netflix jumped 4% following billionaire Bill Ackman's Pershing Square disclosure of a new position. Memory-related stocks outperformed as AI infrastructure optimism continued following positive earnings from Microsoft and Amazon.

Notable Earnings Moves

Cisco Systems fell approximately 9% despite issuing an upbeat revenue outlook, while AI chip designer and optical networking firm Coherent declined post-earnings. Tapestry dropped on muted annual revenue projections. HP and Dell gained after China's Lenovo exceeded quarterly expectations.

Additional Factors

Brent crude fell 2% to $87.07 per barrel on weaker demand expectations, providing additional market support. Weekly jobless claims showed modest increases, indicating labor market stability despite slowing economic activity.