Update: The S&P 500 opened at a record high after US inflation eased last month, lifting hopes for interest rate cut this year.

Inflation in the US ticked down to 3.4% in April from 3.5% in March, in line with forecasts, while the core consumer price index (CPI) – which strips out volatile food and energy prices – rose less than expected at 0.3%. The inflation print was welcome news for US markets after higher than expected reading over recent months as resilient consumer spending, elevated wages and high housing costs all kept prices elevated.

The data sent the S&P 500 to a record intra-day high 5,268, setting the large-cap index up for its 23rd record close this year. The Dow Jones Industrial Average added 0.5% while the Nasdaq, which hit an all-time high on Tuesday night, was up 0.6%.