The U.S. stock market rallied to more records after data suggested inflation across the country was a touch better last month than economists expected.

The S&P 500 rose 1.1% Tuesday, beating its all-time high set two weeks ago.

The Dow Jones Industrial Average added 1.1%, while the Nasdaq composite climbed 1.4% to its own 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 can give the economy and investment prices a boost.