Stock markets across Wall Street rallied today following positive inflation data that aligned with market expectations, reigniting speculation about a possible Federal Reserve rate cut in September. This anticipation led to gains across various sectors of the S&P 500, including a record high for the index as a whole. The Nasdaq 100 and Russell 2000 also experienced significant growth, driven by strong performance in tech and small-cap companies respectively. While initial bond yields saw some fluctuations, money markets now estimate a strong likelihood of a rate cut by the Federal Reserve next month, with the two-year Treasury yield falling to 3.73%. This rise in stock markets is also being fueled by renewed optimism regarding low interest rates and continued momentum in areas like AI.