Markets Surge to New Highs on Rate-Cut Hopes After CPI Cooldown

Markets surged on Tuesday as inflation data came in largely on par with expectations, reinforcing investor confidence that the Federal Reserve may cut interest rates as early as September. This optimism propelled U.S. stock indices to fresh record highs. Bloomberg.com Investopediโ€ฆ

Tom Whitmore

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Tom Whitmore

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Aug 13, 2025

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1 min

Markets Surge to New Highs on Rate-Cut Hopes After CPI Cooldown

Markets surged on Tuesday as inflation data came in largely on par with expectations, reinforcing investor confidence that the Federal Reserve may cut interest rates as early as September. This optimism propelled U.S. stock indices to fresh record highs. Bloomberg.comInvestopedia+1

    On the news front, Intel shares rallied, buoyed by public praise from the U.S. president following a high-profile meeting, amplifying the bullish sentiment. The Wall Street Journal+1

    The underlying trigger? Julyโ€™s inflation rate came in at 2.7% year-over-year, slightly under the 2.8% forecast. This outcome heightened expectations of a September rate cut, with markets pricing in roughly a 94% probability. Bloomberg.com+6The Wall Street Journal+6Reuters+6

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      Tom Whitmore

      Written by

      Tom Whitmore

      Senior correspondent ยท Technology & Energy

      Tom trained as an electrical engineer, which makes him unusually patient with infrastructure stories. He reports on AI, cloud, the energy transition, and the businesses turning frontier engineering into real cash flow. Previously he covered the chip supply chain from Taipei. Skeptical of slide decks; comfortable in a substation. Based in Singapore. Reach out at tom.whitmore@theplatinumcapital.com.