STORY: The benchmark U.S. indexes notched record closing highs Wednesday as a smaller-than-expected rise in consumer inflation bolstered hopes for interest rate cuts by the Federal Reserve.

The Dow rose nine tenths of one percent, the S&P 500 added 1.2% and the tech-heavy Nasdaq gained 1.4%.

Tepid U.S. Consumer Price Index data for April led traders to raise bets that the Fed will cut its policy rate in September and December.

Landsberg Bennett Private Wealth Management Chief Investment Officer Michael Landsberg though says he doesn't think prices are stabilizing.

"We don't think inflation's coming down. You know, if anything, it's accelerating. Yeah. If I look at the data that we see, whether it's you know, from metals to agriculture, things have been going up in, in, in services, things are going up. I mean, the stuff that's you know, interestingly enough, that's really going up, you know, CPI doesn't count anymore. I think coffee is up nearly 80% in the last nine months. We're not going to talk about the coffee prices anymore."

Other data released on Wednesday showed U.S. retail sales were unexpectedly flat in April as higher gasoline prices pulled expenditure away from other goods, indicating that consumer spending was losing momentum.

Stocks on the move included GameStop which dropped 19% though it has more than doubled this week driven by "Roaring Kitty" also known as Keith Gill, a central figure behind the 2021 meme stock frenzy, who posted bullish comments on social media platform X.

Fellow meme stock AMC Entertainment lost 20% but it remains 80% higher this week.