US markets soared to a record high as the inflation report was not as bad as the street was estimating. The moderate inflation reading gave support to the market that the Fed will continue it's easy money policy.

July’s Consumer Price Index released Wednesday showed prices jumped 5.4% which was in line with expectations but the relief came from Core inflation. CPI, excluding energy and food prices, rose by 0.3% last month, below the 0.4% increase expected. The inflation numbers backes the Federal Reserve’s commentary that high price pressures are “transitory” as the economy recovers from the covid recession.

The 30-stock Dow gained 220 points to close at a record high of 35,484.

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