NEW YORK (AP) — The U.S. stock market is climbing toward records after data showed inflation across the country was a touch better last month than economists expected. The S&P 500 rose 0.5% in early trading Tuesday. The Dow Jones Industrial Average was up 202 points, while the Nasdaq composite was 0.5% higher. Stocks got a lift from expectations that the better-than-expected inflation report will give the Federal Reserve more leeway to cut interest rates. Treasury yields fell in the bond market as expectations solidified among traders that the Fed will cut rates for the first time this year in September.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

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