Prices matched expectations... All three major New York indexes hit record highs

On the 11th (local time), all three major indices on the New York Stock Exchange hit new record highs. Although inflation showed a slight upward trend, it was in line with market expectations, and the Federal Reserve
The Dow Jones Industrial Average, which attracted blue chips on the New York Stock Exchange (NYSE), rose 1.36 points from the previous day.
The benchmark S&P 500 index of large-cap stocks rose 0.85% to 6,587.47, while the tech-heavy Nasdaq index rose 2.72% to 46,108.00.
The Dow, S&P 500, and Nasdaq all recorded record highs. Consumer prices for August, announced on the same day, showed an increase compared to the previous month.
Energy prices rose, driving overall inflation. However, as this was in line with market expectations, it also boosted expectations of a rate cut by the Federal Reserve.
According to the U.S. Bureau of Labor Statistics, the Consumer Price Index (CPI) rose 0.4% in August from the previous month, down from 0.0% in July.
This was above the market forecast of 0.2% and 0.2%. The year-on-year increase was 2.9%, slightly higher than the 2.7% increase over the 12-month period ending in March, and in line with market expectations of 2.9%.
Core consumer price index (CPI), which excludes volatile energy and food prices, rose 3.1% in August from a year earlier, in line with Wall Street expectations of 3.1%. Month-on-month, it rose 0.3%.
This was also in line with market expectations (0.3%). The report suggested that inflationary pressures remain. President Donald Trump's global tariff policies have led to a rise in the price of some commodities.
Some analysts say rising service costs could make inflation more entrenched. But more than that, the Fed is likely to focus on slowing employment.
The Bureau of Labor Statistics announced that unemployment claims for the week ending September 6th rose to a seasonally adjusted 263,000, exceeding expectations of 235,000 and representing an increase of 27,000 from the previous week.
"Today's CPI report will likely be driven by unemployment claims," said Seema Shah, chief global strategist at Principal Asset Management.
"The CPI was a little higher than expected, but that doesn't deter the Fed from announcing a rate cut next week," he said.
He continued, "The surge in unemployment benefits will add greater urgency to the Fed's decision-making, and Chairman Powell is likely to cut rates again."
"This is likely to signal the possibility of a September rate cut," he added. Federal funds rate futures are trading at a rate of 1.5% for the first time since the start of the fiscal year, according to the Chicago Mercantile Exchange's (CME) FedWatch tool.
The probability of a "big cut" (0.5% rate cut) is 5.2%. Tech stocks were mixed. Tesla rose 6.04% while
On the other hand, Apple (1.43%), Microsoft (0.13%), and Alphabet (0.51%) rose. On the other hand, Amazon (-0.16%), Meta (-0.14%), and Nvidia
A (-0.08%) fell slightly.