In new historically high closed the markers her Wall StreetS&P 500 and Nasdaq Composite, on Tuesday (12.8.2025), following an inflation report that proved to be milder than estimates and enhanced the chances of paying interest rates from the Fed next month.
Specifically, the S&P index rose 1.13% to 6,445.76, while the NASDAQ index, with high technology companies, closed 1.39% to 21,681.90. At the same time, Wall Street’s Dow Jones Industrial Average rose 483.52 points, or 1.10%, closing at 44.458.61.
New inflation data published on Tuesday reached out investors, who were afraid that US President Donald Trump’s broad tariff policies could cause prices to the US economy.
The consumer price index increased by 2.7% annually in July, while Dow Jones estimated 2.8%. The so -called basic consumer price index, which does not include fluctuations in food and energy prices, increased by 3.1% annually – slightly more than expected 3%.
Expectations for lower interest rates increased sharply after the exposure was issued. According to CME’s Fedwatch Tool transactions, investors now estimate that the chance of reducing interest rates next month is 94%. This is an increase compared to the 85% they estimated before issuing the data. Investors have also increased their expectations to reduce interest rates in October and December.
“More and more people are expecting interest rates in September. So interest rates have a downward trend, and profits have an upward trend – this is a pretty good environment for the broad stock market, “said Tom Hainlin, a national strategic investor at the US Bank Asset Management Group.
Small capitalizations, considered to be the largest beneficiaries of the lowest short -term borrowing interest rates, led the recovery, with the Russell 2000 index rising to the S&P 500.