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 1.1% and was on track to top its all-time high set two weeks ago. The Dow Jones Industrial Average was up 473 points, or 1.1%, as of 2:46 p.m. Eastern time, while the Nasdaq composite was 1.3% 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

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