US stocks today: Wall Street nears record high after lower than expected inflation; Dow jumps 400 points, Nasdaq gains 0.99%

Wall Street charged towards record highs on Tuesday after fresh data showed inflation across the United States was slightly cooler than economists prediction, fuelling hopes that the Federal Reserve could cut interest rates in September.The S&P 500 climbed 0.85% or 54 points, looking set to surpass its all-time high reached just two weeks ago. The Dow Jones Industrial Average was up 437 points, or 1%, as of 9:11 PM IST, while the Nasdaq composite gained 0.99% reaching 21,596, heading for a record.The better-than-expected inflation report lifted investor sentiment, with traders betting it would give the Fed more room to lower borrowing costs at its next policy meeting. Lower rates would make it cheaper for households and businesses to buy homes, cars or equipment, while also boosting investment prices.Tuesday’s report showed US consumer prices in July were 2.7% higher than a year earlier, the same pace as in June, but slightly lower than the 2.8% rise economists had predicted.Some analysts cautioned that upcoming figures could complicate the Fed’s decision-making, given its twin goals of lowering inflation to 2% and keeping the job market strong. Achieving one often risks harming the other.Elsewhere, other central banks are moving in the opposite direction. Australia cut rates for the third time this year on Tuesday.On Wall Street, Intel jumped 3.9% after Trump praised its CEO for having an “amazing story”, less than a week after demanding Lip-Bu Tan’s resignation. Circle Internet Group, the company behind the USDC cryptocurrency, rose 6.7% despite reporting a bigger-than-expected quarterly loss. It said total revenue and reserve income were up 53% in its first quarter as a public company, exceeding forecasts.However, not all companies joined the rally. Celanese plunged 11.7% despite beating profit expectations, with CEO Scott Richardson warning that “the demand environment does not seem to be improving.” Cardinal Health also slid 8.1% after reporting stronger earnings but weaker-than-expected revenue, with analysts noting high market expectations following a 33.3% surge in its shares this year.