The S&P 500 opened in record territory on August 12 after U.S. inflation data matched economists’ expectations and showed price pressures continuing to ease. July headline CPI from the Bureau of Labor Statistics came in at 3.4% year-over-year, down from 3.5% in June, while prices rose 0.1% on the month. Core CPI, which excludes food and energy, increased 2.5% from a year earlier, the lowest reading since February 2026. The Dow Jones Industrial Average and Nasdaq Composite also advanced in early trading, with futures signaling optimism ahead of the 8:30 a.m. ET release. The S&P 500 had ended the previous session at 7,757.64, setting up a move into fresh highs once the data confirmed a steady disinflation trend. Investors took the report as support for the view that the Federal Reserve can stay on hold rather than resume tightening, though core inflation remains above the Fed’s 2% target. The move extends a summer rally supported by stronger corporate earnings and a rebound in technology stocks despite volatility tied to inflation worries, geopolitical uncertainty, and concerns about the economic cycle.