Wall Street is pointed toward new heights before the opening bell Wednesday after new U.S. inflation data raised hopes that the Federal Reserve will cut its benchmark interest rate next month.

Futures for the S&P 500 and Nasdaq each ticked up 0.2%, while futures for the Dow Jones Industrial Average rose 0.3%. The S&P 500 and Nasdaq both closed at record highs on Tuesday.

The rally in markets, which is partly being driven by relief over an extended truce in President Donald Trump’s trade war with China, is being powered by new optimism that borrowing costs in the U.S. will fall.

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 c

See Full Page