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S&P 500 hits record as inflation eases concerns
S&P 500 reaches record high as inflation report raises hopes for Federal Reserve interest rate cuts
S&P 500 reaches record high as inflation report raises hopes for Federal Reserve interest rate cuts
In Short:
– Stocks rose after a positive inflation report, with the Dow Jones up 463 points.
– Investor confidence grew as Trump extended the tariff pause on Chinese goods.
– Stocks rose after a positive inflation report, with the Dow Jones up 463 points.
– Investor confidence grew as Trump extended the tariff pause on Chinese goods.
Stocks rose following a positive inflation report, indicating a potential interest rate cut by the Federal Reserve next month.
The Dow Jones Industrial Average increased by 463 points, or 1.1%, while the S&P 500 and Nasdaq Composite both reached new intraday highs, gaining 1.1% and 1.3% respectively.
The consumer price index rose 2.7% in July, below the expected 2.8%.
Core CPI increased 3.1% year on year, slightly exceeding projections.
Following the data, traders saw a 91% likelihood of a rate cut next month, up from 85% pre-report. Small caps led the market rally, with the Russell 2000 rising significantly.
Tariff Impact
Investor confidence is also influenced by President Donald Trump’s decision to extend a 90-day pause on higher tariffs on Chinese goods.
Market participants are awaiting Thursday’s producer price index for further insight into inflation trends before the Fed’s upcoming policy discussions.
