US stocks pushed higher on Wednesday as Wall Street grew increasingly confident that the Federal Reserve will cut interest rates at its next meeting, with traders seizing on fresh inflation data as evidence that the central bank could shift toward a looser policy stance.

The Dow Jones Industrial Average was the standout performer in early trading, climbing close to 1%, while the S&P 500 added 0.4% and the Nasdaq Composite, after paring earlier gains, was still up roughly 0.3%.

The upbeat tone followed a strong rally the previous day, sparked by the July Consumer Price Index report. While the data showed inflation picked up, the increase was smaller than many economists had anticipated. That surprise nudged market sentiment firmly toward the belief that a September rate cut is all but certain. According to CME Group data, futures traders were pricing in nearly a 100% probability of a cut. Continue reading Nasdaq and S&P 500 Edge Higher Ahead of Key Economic Reports →