U.S. stocks rose and the S&P 500 closed at a record high after a report of moderated wholesale inflation eased interest-rate fears.

The Dow Jones Industrial Average rose 69.72 points, or 0.13%, to 53839.99, closing within 1% of a record high. The broad S&P 500 rose 50.49 points, or 0.65%, to 7798.99, a new record high. The tech-heavy Nasdaq Composite added 214.54 points, or 0.81%, to 26803.03.

The Producer Price Index was unchanged in July from June levels, suggesting that factory-gate inflation levelled off before the latest uptick in oil futures. The data reinforced impressions of softening inflation established by the consumer-price index earlier in the week. Odds of a rate hike in September fell further in Fed funds futures markets.

One strategist said it was a typically sleepy summer atmosphere on the stock market, with the exception of hedging activity on the CBOE Volatility Index, or VIX.

Traders are guarding against "the 'Mike Tyson,' the punch you don't see," said JJ Kinahan, senior vice president at CBOE Global Markets.

Oil gave back some of its recent gains despite the conflict and the gridlock in tanker traffic in the Strait of Hormuz caused by threats of Iranian strikes. U.S.-traded oil futures fell $2.02, or 2.4% to $81.25 a barrel.