04:44 PM EDT, 08/13/2026 (MT Newswires) -- (Updates with market moves after the close.)

The S&P 500 rose to a record on Thursday as traders digested another tame inflation report.

The index gained 0.7% to settle at 7,798.99 after reaching an all-time intraday high of 7,816.7. The Nasdaq Composite climbed 0.8% to 26,803.03, and the Dow Jones Industrial Average edged up 0.1% to 53,839.99.

Most sectors ended higher, led by communication services, while materials posted the steepest drop.

US producer prices held steady in July, defying expectations for a monthly rise, as energy costs continued to decline, Bureau of Labor Statistics data showed. The report follows Wednesday's benign consumer inflation numbers that further lowered bets for a Federal Reserve interest-rate increase next month.

"While prices are still rising and inflation remains well above the (Federal Open Market) Committee's 2% target, the slightly slower pace of increase underscores hope earlier pressures from a global energy shock are already easing," Stifel said in a report. "This won't necessarily remove, but it does potentially mitigate, the sense of urgency for the Fed to firm its policy stance, at least in the nearer term, particularly in the aftermath of a weaker-than-expected July employment report."

As of Thursday, markets are pricing in a 65% probability that the Fed will keep its benchmark rate steady next month, compared with 59% on Wednesday, according to the CME FedWatch tool. The odds that the US central bank will lift rates by 25 basis points fell to 35% from 41%.

Richmond Fed President Tom Barkin offered contrasting views on the inflation outlook on Thursday, saying it's unclear whether the central bank should boost rates to guide inflation back to its 2% target.

US Treasury yields were lower, with the 10-year yield down 4.3 basis points at 4.65% and the two-year yield falling five basis points to 4.15%.

West Texas Intermediate crude dropped 2.4% to $81.27 a barrel in late-afternoon trading, while Brent shed 2.2% to $87.02.

In a social media post on Wednesday, President Donald Trump said the US has "total control" over the Strait of Hormuz.

Iranian officials reportedly said earlier in the week that Hormuz, a key chokepoint for crude flows, will remain closed as long as the US does not accept Tehran's conditions, including a permanent end to the conflict and compensation for war damages.

In company news, Sandisk ( SNDK ) shares jumped 14%, the second-largest gain on the S&P, after the semiconductor company said it expects revenue to grow at a mid-to-high-teens rate from fiscal 2028 through fiscal 2030.

Workday (WDAY) shares surged 18%, the top gainer on the S&P. The company is in talks to be acquired by private equity firm Silver Lake, Reuters reported, citing people familiar with the matter.

Cisco Systems ( CSCO ) shares slumped 8.4%, the biggest drop on the Dow, a day after the networking equipment maker reported a decline in adjusted gross margin.

Tapestry (TPR) shares tumbled 16%, the steepest fall on the S&P. The company provided a full-year outlook below Wall Street's estimates at the midpoint.

Spot gold fell 1.4% to $4,348.92 per troy ounce, while silver lost 1.8% to $64.54 per ounce.