New York – U.S. stocks are heading for records on Friday after un update on inflation came in a bit less painful than feared.

The S&P 500 rose 0.8% and was on track to top its all-time high, which was set earlier this month. The Dow Jones Industrial Average added 267 points, or 0.6%, and was likewise heading for its own record, while the Nasdaq composite was up 1%, as of 9:35 a.m. Eastern time.

The data on inflation is encouraging because it could mean less pain for lower- and middle-income households struggling with still-high increases in prices every month. Even more importantly for Wall Street, it could also clear the way for the Federal Reserve to continue cutting interest rates in hopes of giving a boost to the slowing job market.

The Fed just cut its main interest rate last mont

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