Futures markets are also expecting a rate cut. Investors peg the chances of a quarter-point interest rate cut at nearly 96%, according to the CME FedWatch Tool, a measure of market sentiment.

There is heightened optimism the Federal Reserve will cut interest rates next month, with hopes boosted by a better-than-expected inflation report and Wall Street’s fear gauge falling to its lowest level this year, as the S&P 500 and Nasdaq jumped to new record highs Wednesday.

The dollar slipped for a second straight session on Wednesday, a day after a U.S. inflation reading increased expectations of a Federal Reserve rate cut next month and renewed pressure from President Donald Trump for lower rates added to the sell-off.