Oil prices ease, helping to limit worries about inflation

U.S. stocks headed toward a record on Aug. 13 as inflation signals eased and oil prices dropped. Brent crude fell 2.5% to $86.75 a barrel, after recent swings between $72 and $102 tied to shifting expectations about a potential deal that could allow oil tankers to leave the Middle East more freely. The S&P 500 rose 0.4% and was close to its prior record, while the Dow gained 133 points (0.2%) and the Nasdaq added 0.4%. A report showed U.S. wholesale prices rose 4.7% year-over-year in July, below June’s 5.5% and slightly cooler than economists expected. Traders cut the odds of a September rate hike to 32%. Lower Treasury yields, including the 10-year at 4.64%, supported equities.