why are markets up today

Markets are up today primarily because the latest U.S. inflation data showed consumer prices increased moderately, aligning with economists' expectations, and jobless claims rose to their highest level since 2021. This combination has boosted investor confidence that the Federal Reserve will cut interest rates soon, leading to a market surge to record highs, with the Dow Jones surpassing 46,000 for the first time, the S&P 500 and Nasdaq also hitting record levels. Investors are optimistic about the Fed easing monetary policy despite the inflation rate being above the Fed's 2% target, given signs of a weakening labor market.