The latest economic data has sparked a positive reaction on Wall Street. The inflation data met expectations, strengthening the market's anticipation that the Fed may cut interest rates in September. This expectation has driven the stock market to pump, while causing short-term bond yields to decline.

The S&P 500 index saw widespread pumps across various sectors, with an overall rise of 1.1%, reaching a new historical high. Similarly, the Nasdaq 100 index also reached an all-time high. Notably, the Russell 2000 index, which represents small-cap companies, performed particularly well, rising by 3%.

Although the initial rise in the Treasury market has weakened, the money market still remains optimistic about the Fed's potential interest rate cut next month, with an expected probability close to 90%. The yield on the two-year Treasury bond, which is sensitive to policy changes, has decreased by 4 basis points to 3.73%.

The exchange rate of the US dollar has fallen. Although the core inflation rate in the US has risen to its highest level of the year, the moderate increase in commodity prices has eased market concerns about inflationary pressure from tariffs.

In the stock market, investors are re-betting on a low interest rate environment, coupled with ongoing enthusiasm in the artificial intelligence sector and strong corporate earnings performance, which together have driven the pump in the stock market. This optimistic sentiment seems to be spreading throughout the market, reflecting an increasing confidence among investors in the economic outlook.