U.S. Stock Futures Mixed as Investors Await Wholesale Inflation Data
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On Tuesday, all three major U.S. indices posted strong gains. The S&P 500 and the Nasdaq Composite both closed at new record highs, up 1.1% and 1.4%, respectively. Also, the Dow Jones climbed 1.1%. Small-cap stocks, as measured by the Russell 2000 Index, jumped 3% on expectations to benefit from lower short-term interest rates.
The positive market sentiment on Tuesday was driven by lower-than-expected inflation data, easing concerns that tariffs were driving up prices. As a result, traders are now pricing in a near 94% probability of a Federal Reserve rate cut at its September meeting.
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