US Stocks Rally, Bond Yields Fall on Cooling Inflation Data

US stocks rallied, and bond yields decreased following a US inflation report that suggested the Federal Reserve might cut interest rates in September. The report indicated cooling inflation, giving the market confidence that the Fed could lower borrowing costs. While further data is being sought, many investors anticipate a positive market reaction to the anticipated interest rate cut. Despite this, concerns about a potential recession persist. The S&P 500 experienced its most significant rally this year, and technology stocks showed particularly strong growth. Treasury yields fell, the dollar weakened, and oil prices dropped.