S&P 500 closes at record high as tame inflation data fuels tech rally

The S&P 500 notched another record close, briefly punching above 7,800 intraday before settling at its highest level ever. The catalyst was exactly what Wall Street ordered: inflation data soft enough to keep the Federal Reserve on the sidelines. July’s Consumer Price Index rose just 0.1% month-over-month and 3.4% year-over-year, a slight cooldown from June’s 3.5% annual reading. Both numbers landed roughly in line with economist expectations, which in this market environment counts as a win. The numbers behind the rally The Nasdaq Composite climbed approximately 0.5% to 0.8% on the session, powered by a broad tech rally that lifted names like Meta Platforms and Netflix. The Dow Jones Industrial Average, meanwhile, barely moved, held back by a company-specific headache. Cisco Systems shares cratered nearly 10% after reporting disappointing margins, dragging the price-weighted Dow into flat territory. It’s the kind of single-stock event that exposes the Dow’s quirky construction: one bad earnings report from a high-priced component can neutralize gains from 29 other companies. The CPI release came on the heels of a similarly benign Producer Price Index report, and the one-two pu...