U.S. stock markets saw a significant uptick as investors reacted positively to the latest inflation report, which revealed moderate increases in consumer prices. The S&P 500 and Nasdaq both hit record highs, bolstered by expectations of potential interest rate cuts from the Federal Reserve. Major indices, including the Dow Jones, rose sharply, with reports indicating a 450-point increase for the Dow amid growing confidence in the economic outlook. Analysts believe that the benign inflation data has reignited speculation around the Fed easing monetary policy, driving stocks higher as optimism prevails in the market.