"Inflation Cools, Stocks Soar: Market Update"

Stocks rose as inflation in the US continued to cool down, weakening the case for more interest rate hikes from the Federal Reserve. The S&P 500 and Dow Jones Industrial Average were up, while the Nasdaq saw significant gains. The Consumer Price Index (CPI) report showed a slowdown in inflation, but it remains above the central bank's target. Meanwhile, back-to-school spending is expected to decline due to reduced disposable income. Bank deposit rates are rising, which is good news for savers but poses challenges for banks' profitability. Core inflation remained high, particularly in rent prices, but used car prices dropped. Despite the inflation slowdown, market expectations for a rate hike at the Fed's July meeting remain unchanged.