U.S. equities rallied after government data showed July consumer prices rose broadly in line with forecasts, reinforcing expectations that the Federal Reserve will lower interest rates at its 9-10 September meeting. The S&P 500 briefly topped 6,400 for the first time on 12 Aug, Treasury yields eased and technology shares led gains, helping global benchmarks from Europe to Asia hit fresh highs. Momentum carried into 13 Aug as the probability of a quarter-point Fed cut swelled to about 96%, according to futures pricing. The S&P 500 registered its 17th record close of the year, the Nasdaq also finished at a new peak and the Dow Jones Industrial Average jumped 1.04%. The MSCI All-Country World Index likewise set a second straight record, buoyed by optimism that easier policy would cushion growth despite the United States’ 145% tariff on Chinese goods that took effect in April. The rally stalled a day later when the Labor Department reported producer prices jumped 0.9% on the month and 3.3% on the year, the sharpest increases since 2022. Bond yields and the dollar firmed, and traders trimmed the likelihood of a September cut to roughly 85%, while eliminating bets on a larger half-point move. St. Louis Fed President Alberto Musalem signalled a 50-basis-point reduction was not warranted. Even so, the S&P 500 eked out a 0.03% gain on 14 Aug, closing at a fresh high of 6,468.54, while the Dow and Nasdaq finished virtually flat. Intel rose about 7% after reports the Trump administration is considering taking a stake in the chipmaker. Market participants now await retail-sales and personal-consumption-expenditure figures later in August for further clues on whether the Fed can begin what analysts describe as a potentially ‘hawkish’ easing cycle.