S&P 500, Nasdaq enjoy record day

(The Center Square) – Two of the major three stock indices closed at all-time highs Tuesday amidst speculation that the Federal Reserve may reduce interest rates in September.

The S&P 500 climbed 72.31 points, or 1.13%, to a record 6,445.76. The Nasdaq Composite finished at a peak 21,681.90, up 296.50 points, or 1.39%. The Dow Jones Industrial Average gained 483.52 points, or 1.10%.

The S&P has recorded 16 all-time highs so far this year, with the Nasdaq approaching 20, according to financial magazine Barron's.

This month's consumer price index report was released Tuesday morning, revealing an annual inflation rate of 2.7% for July and a core CPI — which excludes volatile food and energy prices — of 3% year over year. Though roughly in line with projections, it remains well above the Fed's target rate of 2%. The Fed's next meeting, where it will consider adjusting interest rates, is scheduled for September.

Since taking office in January, President Donald Trump has repeatedly called on Fed Chairman Jerome Powell to lower interest rates, believing it will stimulate the economy, but Powell has thus far left rates unchanged from 4.25%–4.50%. The Fed, the U.S. central bank, sets monetary policy and operates independently of the president and Congress, though it "reports to and is accountable to Congress." As Powell has held his ground, Trump is now "considering" a lawsuit against him, White House Press Secretary Karoline Leavitt confirmed at a Tuesday press briefing.