U.S. Stock Markets Hit Record Highs Amid Tech Rally

U.S. stock markets reached record peaks this week, with the S&P 500 achieving its first all-time closing high in two months and the Nasdaq gaining 1%. The rally followed a surge in semiconductor and technology shares and strong corporate earnings. A reduction in tensions between the United States and Iran also contributed to the growth by lowering oil prices.

Despite the gains, investors remain anxious regarding the July consumer price index report due Wednesday. Inflation continues to exceed the 2% annual target of the Federal Reserve System, with economists projecting a year-over-year rise of 3.4%.

This data will likely inform the central bank's interest rate decision for its September meeting. Markets currently price in a nearly 60% chance of a rate hike. Investors are also monitoring upcoming producer prices, retail sales data, and earnings reports from technology firms including Cisco and Applied Materials.