Dow, S&P 500 End At Records After US Inflation Report

The Labour Department said the consumer price index increased 0.5 percent last month after climbing 0.9 percent in June, the largest drop in month-to-month inflation in 15 months, easing concerns about the potential for runaway inflation.

Investors have been closely attuned to inflation pressures in recent months, concerned that a continual rise in prices could push the Federal Reserve to begin to scale down its ultra-accommodative policy stance earlier than anticipated.

The Dow Jones Industrial Average rose 0.62 percent to 35,485, the S&P 500 gained a quarter of a percent, to 4,448 and the Nasdaq Composite dropped 0.16 percent, to 14,765.

Shares of equipment maker Caterpillar advanced 3.55 percent and was the biggest boost to the Dow. Also moving higher were construction materials supplier Vulcan Materials, up 3.24 percent and steelmaker Nucor, up 3.91 percent.

The materials and industrials were the best performing of the 11 major S&P sectors.

Technology stocks moved off earlier lows in the wake of a strong ten-year note auction, which sent yields lower after a five day streak of gains session amid optimism about a stronger economic reopening.

NortonLifeLock jumped 8.70 percent after the cybersecurity company agreed to buy London-listed rival Avast for up to US$8.6 billion.

Coinbase Global climbed 3.24 percent after the cryptocurrency exchange beat market estimates for second-quarter profit.

Virgin Galactic plunged 12.67 percent after Morgan Stanley downgraded the stock to "underweight" from "equal-weight", pointing to a prolonged period of no flights. (Reuters)