(Bloomberg) — Stocks hit fresh all-time highs as a broad cooldown in inflation spurred a plunge in bond yields, with traders betting the Federal Reserve will be able to cut rates more than once this year.
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The S&P 500 topped 5,400 for the first time, with gains led by its most-influential group: technology. A rally in Treasuries sent two-year yields down as much as 17 basis points as the US dollar dropped against all of its developed-world peers. Fed swaps now fully price in quarter-point rate cuts in November and December — and bets on a September reduction also rose.
In the run-up to the Fed decision, data showed the core consumer price index cooled to the slowest pace in more than three years. The figures may represent the early stages of inflation resuming a downward trend that would allow officials to cut rates.
“This report is exactly what the Fed needed to increase its confidence that inflation is…
