Inflation data meets expectations, US stocks hit new highs, and interest rate cut expectations drive the market pump.

On August 13, Wall Street remained calm as the expected inflation data intensified market speculation about the Fed's interest rate cut in September, driving the stock market to rise and short-term bond yields to decline.

All major sectors of the S&P 500 index rose, and the index increased by 1.1%, reaching a historic high. The Nasdaq 100 index also reached an all-time high. The Russell 2000 small-cap index rose by 3%. Although the initial upward momentum of Treasury bonds has weakened, the money market is anticipating about a 90% likelihood of a rate cut by the Fed next month. The two-year Treasury yield, more sensitive to upcoming policy changes, fell by 4 basis points to 3.73%.

The dollar has fallen. The core inflation rate in the US has risen to its highest level since the beginning of the year, but the slow rise in commodity prices has eased concerns about tariff-driven pressures. In the stock market, a renewed bet on low interest rates has driven a rising trend supported by ongoing enthusiasm for artificial intelligence and strong corporate earnings.