S&P 500 and Nasdaq Hit Record Highs as Inflation Moderates Ahead of Fed Decision

U.S. equity markets rallied sharply, with the S&P 500 and Nasdaq reaching new records after inflation data came in slightly below expectations. The softer readings reinforced investor confidence that the Federal Reserve may implement a rate cut next week. Treasury yields fell, while technology and consumer discretionary stocks led the advance. Market participants viewed the report as evidence that price pressures are easing without harming growth. Analysts noted that sustained moderation in inflation could support a stronger equity cycle into year-end.