Wall Street hits record high on cooling US inflation

The stock market is like a giant scoreboard that shows how well big companies are doing.

When the scoreboard goes up, it usually means investors feel good about the future.

This week, the scoreboard reached its highest point ever.

That happened because a report showed that the prices of things businesses sell are going up more slowly.

Slower price increases are called cooling inflation.

When inflation cools, the Federal Reserve, which is like the grown-up bank for banks, is less likely to make borrowing money more expensive.

The Fed had kept its interest rates unchanged at its July meeting.

Investors now think there is a smaller chance the Fed will raise rates again in September.

Prices of everyday things are still high, but the new data made people feel more hopeful.