The S&P 500 and Nasdaq have surged to new all-time highs, buoyed by positive sentiment surrounding trade talks and anticipation of a dovish Federal Reserve. Investors are responding favorably to recent inflation data, which reported tame price increases, further supporting hopes for a rate cut. As the stock market continues its rebound from earlier drops, various indices are nearing record levels, with the S&P 500 flirting with significant milestones. An optimistic outlook is prevailing among traders, who are keenly watching to see if this momentum can be sustained amid ongoing economic challenges.