Inflation moderated as Intel and Nvidia fueled the AI trade in last week's market

Cooler inflation helped markets extend their streak last week, even as the S&P 500 and Nasdaq slipped modestly on Friday. The S&P 500 notched its third straight winning week and rose above 7,800 on Thursday for the first time ever, closing at a record. The Dow fell nearly 0.6% for the week. Wednesday’s CPI showed a 0.1% July increase and eased annual inflation to 3.4%, while the next day’s PPI was flat on the month with 4.7% growth year-over-year. Yields declined as traders cut expectations for a September hike, with CME Fed Watch pricing a 67% hold.