US stocks rose amid increasing expectations that the Federal Reserve will cut interest rates at its next meeting, following the latest inflation data.

The benchmark S&P 500 and Nasdaq hovered near record highs on Wednesday, but the market reflected weakness in some technology stocks after the previous day's strong gains on hopes that the Federal Reserve was getting close to a monetary easing cycle.

U.S. stocks remained sharply higher in midday trading on Tuesday after a broadly in-line July consumer-price index report propelled the S&P 500 and the Nasdaq Composite to fresh intraday records. The S&P 500 was rising 0.