Wall Street celebrated a historic milestone yesterday as the S&P 500 crossed 6,400 for the first time in its history, closing at 6,445.76 – marking its 16th record high of 2025. The broad market rally was fueled by cooler-than-expected inflation data that has investors betting big on Federal Reserve rate cuts coming as early as next month.
๐ฅ What Is Happening
The July Consumer Price Index (CPI) delivered exactly what markets wanted to see. Headline inflation held steady at 2.7% year-over-year, below the expected 2.8%, while core inflation (excluding food and energy) ticked up to 3.1% – right in line with forecasts. This โgoldilocksโ reading was just right for investors who had been nervously watching for signs that Trumpโs aggressive tariff policies might trigger runaway inflation. Instead, the data showed tariffs havenโt meaningfully passed through to consumer prices yet. Market reaction was swift and decisive: S&P 500: +1.1% to record…
