US stocks closed higher on gains in Tesla and Micron Technology.
In addition, US Consumer Price Index (CPI) data and initial jobless claims increased expectations that the Federal Reserve (Fed) will cut interest rates this month.
CPI data rose more than expected in August, with the annual inflation rate recording the highest increase in the last seven months.
In a separate report, initial jobless claims for the week ended September 6 amounted to 263,000, the highest level in almost four years.
Tesla shares jumped 6%, supporting the S&P 500 and Nasdaq indexes to reach new highs.
Micron Technology shares rose 7.5% to $150.55 after Citigroup raised its price target to $175. The Philadelphia Semiconductor Index rose 0.9% to an all-time high.
The S&P 500 index rose 0.85% to 6,587.47, the Dow Jones rose 1.36% to 46,108.00, while the technology-focused Nasdaq added 0.72% to 22,043.08.
Moody’s Ratings Chief Credit Officer Atsi Sheth also predicted the Fed would cut interest rates by 25 basis points next week, followed by another 25 basis points by the end of the year.
Futures trading showed traders were confident the Fed would cut interest rates by at least 25 basis points at its policy meeting next week, with a 7% chance of a larger cut of 50 basis points.
Meanwhile, Centene shares jumped 9% after the health insurer maintained its full-year profit forecast and affirmed its Medicare plan quality rating as in line with expectations.
Trading volume on the US exchange was worth $18.2 billion, compared with an average of $16.1 billion over the full 20 trading days.
