Global stocks rallied on Wednesday on hopes the Federal Reserve will cut interest rates in September. U.S. stock futures rose, while Treasury yields and the dollar fell.

The Labor Department’s latest consumer-price index showed inflation held steady in July, keeping an imminent Fed rate cut in play.

Interest-rate futures indicate traders now see a 96% chance the Fed will cut rates next month, according to CME Group data, up from 86% Monday.

In an interview on Fox Business late Tuesday, Treasury Secretary Scott Bessent encouraged the central bank to consider a larger half-percentage-point rate cut at its September meeting.

Futures for the Dow industrials, Nasdaq-100 and S&P 500 rose modestly. Both the Nasdaq Composite and S&P hit record highs on Tuesday.

The dollar weakened against the euro, the pound, the Swiss franc and the yen.

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