The stock market jumped for a second day in a row after more economic data showed that pricing pressures eased in July, which added to investors' hopes that inflation may have peaked.
Wholesale inflation fell in July.
The S&P 500 gained 1% and the tech-laden Nasdaq was up 1.2% this week.
Markets got a boost after the July producer price index (PPI), which measures wholesale inflation, decreased by 0.5% from the prior month as gasoline prices fell.
The consumer price index rose 8.5% in the 12 months ending in July, less than the 8.7% expected by economists and down from 9% in June
The positive reports gave investors hope that inflation may have peaked, which could allow the Fed to slow the pace of rate hikes.
Disney's shares jumped more than 8% after the company posted strong results and announced a price increase for its Disney+ streaming service
Six Flags' shares plummeted more than 21% after the company's quarterly profit and revenue came in well below expectations.
The S&P 500 rose to a three-month high on Wednesday. Since this year's low point on June 16, the market has rebounded strongly and the S&P 500 has gained over 15%. Tech stocks have bounced back after a brutal selloff in the first half of the year.
Jamie Cox is the managing partner of Harris Financial Group. He says that the Federal Reserve doesn't need to apply emergency brake monetary policy and that a soft landing runway is in sight.
The moderation in pricing pressures is encouraging, but the Fed has a lot of work to do to bring inflation down further. He says that a peak in inflationary pressures is not an end to the tightening cycle. It took three years and two recessions in the early 1980's before the Fed succeeded in their fight against inflation.
Has inflation peaked after consumer prices cooled slightly in July? There is a magazine called "Forbes."
Tech stocks are leading markets higher again.
The experts are warning of a bear market rally.
The stock market is under pressure despite a strong jobs report.
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