Stocks Hit New Heights with Easing Inflation Fears

The S&P 500 reached an all-time high on Thursday, breaking the record set in December. This uptick came after more than a week of gains, sparked by signs that inflation was slowing down more than expected in December. President Trump's commitment to lower oil prices, a key factor in inflation, also played a role in boosting investor confidence. The index saw a small increase of 0. 5 percent on Thursday. This latest gain adds to the 4 percent rise seen in the first three weeks of the year. Investors had been worried about potential inflation from Trump's policies, such as new tariffs and a mass deportation program, which could drive up consumer prices and wages. These concerns had kept the market quiet for weeks. Investors feared that higher inflation would lead the Federal Reserve to keep interest rates higher than anticipated. Higher rates make borrowing more expensive for consumers and companies, which can negatively impact stock prices.