US stock indices opened Thursday higher on track for the third profit in a row, with major indices scaling fresh record highs.

Dow Jones rose above 40,000 points for the first time in history amid a strong risk appetite, with the odds of multiple Fed rate cuts this year improving.

US stocks are expected to sustain their momentum amid new cash inflows, while the Fed is likely to pump in more liquidity soon as monetary easing starts.

US Stocks

Dow Jones rose by 0.35% today to 40,051 points, a record high, with a session-low at 39,879.

The SP 500 rose 0.29% to 5,325 points, a record highs as well.

Tech-heavy NASDAQ rose 0.43% today to a record high of 18,669.

Dow Jones rose 0.88% on Wednesday, while SP 500 rallied 1.17% yesterday, as NASDAQ surged 1.9%.

US Consumer Prices

US consumer prices rose 3.4% y/y in April, down from 3.5% in March.

Core prices rose 3.6% y/y in April, down from 3.8% in March, marking the lowest rate since April 2021.

On a monthly basis, consumer prices rose 0.3% in April, down from 0.4% in March.

This a huge decline from the peak of 9.1% scaled in June 2022.

Fed Remarks

Chicago Fed President Austan Goolsbey said hes optimistic that inflation will continue to decline in upcoming months.

He reiterated Fed Chair Jerome Powells remarks earlier this week that its unlikely the Fed will have to raise interest rates once more.

US Rates

Following the data and remarks, the odds of a Fed 0.25% interest rate cut in July rose to 35%, while the odds of such a cut in September rose to 75%.

According to the Fedwatch tool, investors expect two interest rate cuts by the Federal Reserve this year, likely in September and November.