It looks all but certain at this point that the Federal Reserve will soon cut rates.

Shares of Tesla ( TSLA 5.89% ) climbed higher on Thursday, finishing the day up 6%. The spike came as the S&P 500 gained 0.8% and the Nasdaq Composite rose 0.7%.

The latest consumer price index (CPI) data was released this morning alongside the latest unemployment figures. The results made investors more confident that rate cuts are coming, lifting stocks across the market.

The Fed now has to make a decision

The Federal Reserve today received the last of the primary data it will use to decide whether to cut rates (and by how much) at its meeting next week. The CPI report for August was hotter than expected and is now close to a whole percentage point higher than the Fed's target of 2%. U

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