U.S. stock indices have reached record closing highs, driven by moderate inflation data that has boosted expectations for potential Federal Reserve rate cuts. The S&P 500 and Nasdaq both marked new highs as the July Consumer Price Index showed inflation holding steady at 2.7%. The Dow Jones also saw a significant rise, climbing over 480 points, reflecting strong investor sentiment. Market participants are optimistic as lower interest rates could further fuel the rally, although some remain cautious ahead of upcoming inflation reports. Overall, the stock market has shown resilience in the face of global trade tensions and inflation concerns.