S&P 500 and Nasdaq Climb to New Highs
US stocks rallied Tuesday, with the S&P 500 and Nasdaq hitting record highs, each up over 1%, while the Dow jumped more than 500 points after July inflation data came in just below expectations, fueling hopes for a Federal Reserve rate cut next month.
The Consumer Price Index rose 2.7% year-over-year versus a 2.8% forecast, while core CPI increased 3.1%, slightly above estimates. Traders now see over a 90% chance of a September cut, with further easing likely later this year. Gains were supported by easing trade tensions, as President Trump extended a 90-day pause on higher tariffs for Chinese goods, and by strong corporate results, including Circle Internet Group’s 2.3% rise on robust Q2 revenue.
Intel surged 5.3% after Trump praised CEO Lip-Bu Tan, and Meta climbed nearly 3%. Sentiment was further boosted by the largest inflows into US equities in two years and optimism ahead of the Fed’s Jackson Hole meeting later this month.
Source: Trading Economics
