New york: US stock indices surged to fresh record highs on Wall Street Tuesday, as data showing a moderate rise in July inflation strengthened expectations that the Federal Reserve will move to cut interest rates next month.

According to Qatar News Agency, the S and P 500 climbed 72.23 points, or 1.13%, to finish at 6,445.68, while the Nasdaq Composite advanced 293.94 points, or 1.37%, to 21,679.34.

The Dow Jones Industrial Average gained 481.05 points, or 1.09%, closing at 44,456.14.

The gains came as investors interpreted the latest inflation reading as a sign that price pressures are easing sufficiently for the Fed to begin a policy shift, potentially bolstering economic growth and corporate earnings.