Stock market today: Stocks edge higher to close at a record after upbeat producer inflation data

  • US stocks ended mostly higher on Thursday as investors were encouraged by new inflation data.

  • Data showed wholesale inflation rose less than expected in May, a day after CPI showed consumer inflation also slowed.

  • Tesla shares jumped ahead of the results of Elon Musk's pay package vote, while Broadcom soared after earnings.

US stocks edged up to another record close on Thursday as investors took in another inflation reading that showed prices are cooling, bolstering the case for rate cuts by the Federal Reserve.

The S&P 500 hit a fourth-straight all-time high at the end of Thursday's session.

Traders took in another batch of encouraging economic data, with the Bureau of Labor Statistics reporting that producer price inflation rose less than expected in May, dropping 0.2% against estimates for an increase of 0.1%. It marks the largest monthly decrease since October. Producer prices were up 2.2% on an annual basis.

On the labor front, jobless claims rose, indicating some loosening of the job market as more Americans apply for unemployment benefits. The number rose to its highest level in 10 months last week, with 242,000 people applying for unemployment.

Those numbers, along with Wednesday's consumer price index reading for May, paint a picture of a cooling economy and make it more likely the Fed could start cutting interest rates in the coming months.

"In short, the latest data in hand nudge the door a little wider open for the Fed to begin making an interest rate cut later this year," Comerica Bank chief economist Bill Adams said Thursday, adding that the firm sees the first cut in September followed by another at the December policy meeting.

Tesla shares jumped in Thursday's session as Elon Musk said his $56 billion pay package, which shareholders are voting on, was set to be approved. Earlier in the day, it was reported that investment giants BlackRock and Vanguard, which own about 13% of Tesla stock, would both vote in favor of the pay deal.

Meanwhile, Broadcom stock rocketed higher on upbeat earnings and the announcement of a 10-for-1 stock split. Bank of America analysts said in a note that the company could be the next to enter the trillion-dollar market cap club, an elite group that includes fellow chip maker Nvidia.

Here's where US indexes stood at the 4:00 p.m. closing bell on Thursday:

Here's what else is going on today:

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