The U.S. stock market is rallying toward records on Tuesday after data suggested inflation across the country was a touch better last month than economists expected.

The S&P 500 rose 0.9% and was on track to top its all-time high set two weeks ago. The Dow Jones Industrial Average was up 467 points, or 1.1%, as of 12:30 p.m. Eastern time, while the Nasdaq composite was 1.1% higher and also heading toward a record.

Stocks got a lift from hopes that the better-than-expected inflation report will give the Federal Reserve leeway to cut interest rates at its next meeting in September.

Lower rates would give a boost to investment prices and to the economy by making it cheaper for U.S. households and businesses to borrow to buy houses, cars or equipment. President Donald Trump has angrily been

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