Stocks rise as traders reduce rate hike bets, oil prices drop

By Chris Prentice and Stefano Rebaudo

NEW YORK/MILAN, Aug 13 (Reuters) - Stocks roseate connected Thursday arsenic investors pared backmost U.S. complaint hike bets, portion lipid prices dropped arsenic higher inventories and little planetary request forecasts offset geopolitical concerns.

U.S. shaper terms data, ‌which was unchanged successful July, reduced expectations for a Federal Reserve complaint hike adjacent month, helping tech stocks powerfulness the ‌S&P 500 to an intraday grounds high.

Traders scaled backmost their bets connected a September complaint hike, pricing successful a 65% probability of the Fed staying connected clasp adjacent period ​versus 50% connected Wednesday.

Gold prices pared losses and U.S. Treasury yields extended their diminution aft the shaper terms data.

MSCI's gauge of stocks crossed the globe roseate 7.32 points, oregon 0.63%, to 1,161.85.

TECH BOOSTS WALL STREET

The Dow Jones Industrial Average roseate 113.90 points, oregon 0.21%, to 53,884.17, the S&P 500 roseate 55.76 points, oregon 0.72%, to 7,804.26 and the Nasdaq Composite roseate 235.69 points, oregon 0.89%, to 26,824.18.

"Earnings play (for AI infrastructure names) has been beardown and ‌shows nary signs of slowdown successful Capex," Mohit ⁠Kumar, an economist astatine Jefferies, said, earlier stating the slope remained with an overweight presumption successful the AI sector.

"The inheritance of precocious amounts of currency successful the strategy and Fed not hiking (Jefferies view) should proceed to enactment ⁠risky assets," helium added.

In Europe, the STOXX 600 scale roseate 0.12%, portion the wide FTSEurofirst 300 scale gained 3.09 points, oregon 0.12%.

MSCI's broadest scale of Asia-Pacific shares extracurricular Japan closed up 0.96% and emerging marketplace stocks were 0.92% higher astatine 1,697.36.

US-IRAN DEADLOCK

Washington and Tehran traded accusations connected Thursday implicit a woody to ​reopen ​the strategically captious Strait of Hormuz, with the United States saying Iran had ​failed to conscionable its obligations and Iran countering that Washington ‌had not delivered connected ending a blockade of Iranian ports.

Still, Brent crude futures fell to $86.72 per barrel, down 2.54% connected the day, and U.S. crude dropped 2.7% to $81.02, connected signs of little demand.

Commercial crude lipid inventories posted their largest play summation since January 2023, and the Organization of the Petroleum Exporting Countries lowered its satellite lipid request maturation forecast for 2026.

High vigor prices are expected to measurement much heavy connected the economies of the euro portion and Japan, some ample vigor importers, portion the United States is seen arsenic comparatively insulated from lipid shocks.

CURRENCIES, BONDS

The ‌dollar index, which measures the greenback against a handbasket of currencies including the ​yen and the euro,fell 0.1% to 99.85, with the euro up 0.14% astatine $1.154.