S&P500: Will markets hit new records high on solid earnings?

Major stock markets in Europe and the US are trading steady on Thursday, hovering near records high.

Bets for a faster tightening of monetary policy tempered expectations for an earlier rate hike and eased concerns the Fed will rush to reduce its stimulus as Inflation data came out roughly in line with forecasts yesterday. The monthly CPI for July ticked up at 0.5%, and the annual rate printing at 5.4%.

Meanwhile, Earnings growth is expected to peak during the second quarter as inflation rates peak. Over 440 companies have reported earnings as of Friday, where the S&P 500 will likely have seen a boost of 93.1% in earnings during the second quarter.

After strong employment figures last week, investors focus on the initial jobless claims and monthly PPI releases due later today. The initial jobless claims report is expected to decline by 10K to 375K, and the PPI would cool at 0.6% MoM.