NEW YORK (AP) — U.S. stocks are heading for records on Friday after an update on inflation came in a bit less painful than feared.

The S&P 500 rose 1% and was on track to top its all-time high, which was set earlier this month. The Dow Jones Industrial Average was up 519 points, or 1.1%, as of 1:01 p.m. Eastern time, and the Nasdaq composite was 1.3% higher. Both were also rising toward records.

The data on inflation is encouraging because it could mean less pain for lower- and middle-income households struggling with still-high increases in prices every month. Even more importantly for Wall Street, it could also clear the way for the Federal Reserve to keep cutting interest rates in hopes of giving a boost to the slowing job market.

The Fed just cut its main interest rate last month fo

See Full Page