S&P 500 closes at record for second day on inflation data, Oracle stock surge

The S&P 500 reached fresh highs on Wednesday after a reading on wholesale prices unexpectedly declined, a welcome development for investors clamoring for a Federal Reserve rate cut next week to boost the economy.

The broad market index finished up 0.3% at 6,532.04, a record close for the index. It had risen about 0.7% at its peak to 6,555.97, scoring a new all-time intraday high as well. The Nasdaq Composite edged up 0.03% to end at 21,886.06, likewise notching a closing high after hitting an all-time intraday high prior to its afternoon pullback. The Dow Jones Industrial Average lost 220.42 points, or 0.48%, to finish at 45,490.92, bogged down by a decline in Apple shares as the latest iPhone announcement failed to impress investors.

By the end of the session, most of the up-move was gone, with Oracle and artificial intelligence-linked stocks notching the biggest gains. There were more losers in the S&P 500 than winners.

Sentiment was initially higher after the latest producer price index reading showed that wholesale prices fell 0.1% in August. Economists polled by Dow Jones had estimated a 0.3% gain. Core PPI, which excludes food and energy prices, likewise declined 0.1%, while the consensus called for 0.3%.