US stocks showed positive movement with the S&P 500 index and Nasdaq Composite recording record closing highs.
The rise was also supported by July inflation data that did not increase as expected, again strengthening speculation that the Federal Reserve (Fed) will cut interest rates next month.
The Labor Department reported that the consumer price index (CPI) rose 0.2% in July, while annual inflation was slightly lower than expected, prompting President Donald Trump to reiterate his call for interest rate cuts.
The Dow Jones Industrial Average rose 1.10% to 483.52 points, the S&P 500 strengthened 1.13% to 72.31 points, while the technology-focused Nasdaq rose 1.39% to 296.50 points.
In other news, short-term Treasury yields, which reflect interest rate expectations, fell, while futures markets showed traders pricing an 88.8% chance that the Fed will cut rates by about 25 basis points in September.
Meanwhile, the quality of economic data continued to be a concern after Trump fired Bureau of Labor Statistics Chief Erica McEntire following a downward revision to the previous month's NFP employment figures.
In addition, Alphabet shares rose 1.2% after Perplexity made a $34.5 billion cash offer to buy the Chrome browser.
Intel Corp shares jumped 5.6% after Trump described his meeting with CEO Lip Bu Tan as "very interesting."
The market is now focused on Trump's nomination of EJ Antoni as bureau commissioner and ongoing speculation that he may be nominated for the top Fed job.
Trading volume on US exchanges hit $16.40 billion compared to a 20-day average of $18.3 billion.
