Dow Pops 300+ Points, S&P 500 Nabs Another Record as Rate-Cut Hopes Keep Wall Street Buzzing

Wall Street kept the party going Wednesday, with stocks climbing for a second straight day and two of the big three indexes hitting fresh record highs. Investors are still riding the wave from a cooler-than-expected inflation report, betting that the Federal Reserve is now all but certain to deliver a September rate cut.

The Dow Jones Industrial Average surged 329 points, or 0.7%, closing in on all-time highs. The S&P 500 inched up 0.1%, enough to set a new record, while the Nasdaq Composite flirted with fresh highs before easing back to flat.

Tech stocks were a mixed bag — AMD soared more than 6% and Apple gained about 1%, but Nvidia and Meta slipped. In the media space, Paramount Skydance stole the show, rocketing over 22% in its best single-day performance since March 2020. Warner Bros. Discovery and Disney also enjoyed healthy gains, while smaller player Webtoon Entertainment nearly doubled after strong earnings and a Disney content deal.

The rally follows Tuesday’s CPI report, which showed prices rising slightly less than feared. Traders are now pricing in a 99% chance of a quarter-point cut in September, according to CME’s FedWatch tool — and some heavyweights want even more. Treasury Secretary Scott Bessent said Wednesday that the Fed should cut by at least 150 basis points, starting with a half-point trim next month.

Still, investors have more data to chew on. Thursday brings the Producer Price Index, offering another inflation checkpoint before the Fed’s closely watched Jackson Hole meeting later this month.

Meanwhile, IPO action made headlines as crypto exchange Bullish exploded in its NYSE debut, opening 143% above its IPO price before being halted for volatility. In corporate news, Amazon shook the grocery sector with plans for free same-day fresh food delivery in 1,000 locations — knocking Walmart shares down 2% and dragging Kroger, Albertsons, and Instacart lower.

For now, the market’s vibe is still upbeat. As Baird strategist Ross Mayfield put it:

“This has been a really impressive earnings season… a nice kind of breadth.”

If the Fed delivers what traders expect next month, Wall Street’s record streak might just have more room to run.

With input from CNBC, Reuters, Forbes, and USA Today.