Inflation Cools, Wall Street Surges on Fed Rate Cut Hopes

US stocks climbed on Friday following a key inflation report that fueled optimism on Wall Street about a potential interest rate cut by the Federal Reserve. The S&P 500 rose 0.5% in early trading, with a majority of its stocks trading higher. The Dow Jones Industrial Average gained 53 points, or 0.1%, and is on track to reach an all-time high for the fourth time this week. The Nasdaq Composite gained 0.8%. The report showed that inflation rose just 0.2% from June to July, confirming a cooling trend in price increases. This development puts the Fed on course to potentially reduce interest rates at its next meeting. The market anticipates a full 1% reduction in the benchmark rate by year’s end.