Stock market investors are betting on a September rate cut after the latest CPI report Tuesday, with the S&P 500 on track for an all-time high.
The S&P 500, the Dow, and the Nasdaq rose 0.5% each at the open. If the S&P 500 closes above 6,389.77, it will set a new record; the index is currently trading at 6,409.63.
The July consumer price index rose at a 2.7% annual rate, in line with June’s reading and slightly below economists’ expectations. The report should give the Fed more room to focus on the signals of a weaker labor market rather than its price stability objective, which would in turn mean an interest-rate cut next month.
