US stocks rose amid increasing expectations that the Federal Reserve will cut interest rates at its next meeting, following the latest inflation data.

After the opening bell, the Dow rose 0.5%, as the S&P 500 gained 0.4%. The tech-heavy Nasdaq composite climbed 0.5% in morning trade. The S&P 500 and the Nasdaq closed at record highs on Tuesday as rate-cut odds bolted higher following July inflation data.

Stocks closed higher Wednesday as the market extended a rally that has pushed major indexes back to record-high levels.