U.S. equities advanced sharply on Tuesday, with the S&P 500 and Nasdaq Composite closing at fresh records after July consumer-price data met expectations and reinforced hopes for Federal Reserve policy easing. The S&P 500 added 1.13% to finish at 6,445.76, while the Nasdaq Composite rose 1.39% to 21,681.90. The Dow Jones Industrial Average gained 483.52 points, or 1.10%, to 44,458.61. Small-caps outperformed as the Russell 2000 climbed 2.99% to 2,282.77, marking its strongest session since May 12. Inflation figures showed price pressures broadly in line with forecasts, prompting traders to keep pricing in about 60 basis points of rate cuts by December. Lower borrowing-cost expectations helped lift rate-sensitive sectors, and airline shares rallied after data indicated a 4% month-on-month increase in July airfares— the first rise in six months.