September 11, 2025 — U.S. stock markets surged today, with the Dow Jones, S&P 500, and Nasdaq reaching intraday record levels following the release of inflation data that surpassed expectations, but did not derail investor confidence in upcoming Federal Reserve rate cuts.Reuters
Consumer prices in August rose 0.4% month-over-month and 2.9% year-over-year — the largest annual inflation increase in seven months. Despite this hotter reading, markets focused on signs of weakness elsewhere, including a rise in initial jobless claims to 263,000, reinforcing expectations that the Fed will ease monetary policy.Reuters+2Reuters+2
Sectors across the board saw gains. Healthcare led the advance, while technology and consumer discretionary also posted strong performances. Notably, Micron jumped 10% after a price target upgrade from Citigroup, and Centene rose amid reaffirmed profit guidance.Reuters
Investors believe at least a 25 basis-point cut is likely at the Fed’s next meeting, with market pricing now suggesting three cuts over the remainder of the year. The rally reflects confidence that inflation has peaked and that monetary policy will shift toward easing.Reuters+1