Wall Street’s major indexes rose on Tuesday, with the S&P 500 and Nasdaq hitting record highs, gaining 1.1% and 1.3% respectively, after July’s inflation data largely met expectations. The Consumer Price Index increased 0.2% month-over-month and 2.7% year-over-year, easing concerns about rising prices amid ongoing trade tensions. This bolstered expectations for a Federal Reserve rate cut next month, with traders pricing in about a 90% chance of a 25-basis-point reduction in September. The Dow climbed 450 points, supported by easing trade tensions after President Trump extended a 90-day tariff pause on Chinese goods, and by strong corporate earnings, including a 2.3% rise in Circle Internet Group on robust Q2 revenue. Intel surged 5.3% following Trump’s praise of CEO Lip-Bu Tan, while Meta gained nearly 3%. Investor sentiment was further lifted by the largest inflows into US equities in two years and optimism ahead of the Fed’s Jackson Hole meeting later this month.