Traders Pare Bets on Fed Rate Hike This Year as Oil Prices Fall

Stock markets rose as traders reduced their bets on a Federal Reserve interest-rate hike this year. This shift followed a retreat in oil prices and flat PPI data, which reinforced positive sentiment regarding the inflation outlook. Inflation has fallen for two consecutive months, leading to a decline in the Dollar. Bond traders have stopped fully pricing in a rate increase, though questions remain about whether a September rate hike is still on the table.