NEW YORK (AP) — Wall Street inched to more records on Wednesday following a surprisingly encouraging report on inflation and a stunning forecast for growth from Oracle because of the artificial-intelligence boom.

The S&P 500 rose 0.3% and set an all-time high for a second straight day. The Dow Jones Industrial Average dropped 220 points, or 0.5%, and the Nasdaq composite edged up by less than 0.1% after both likewise set records the day before.

Stocks have hit records in large part because Wall Street is expecting the economy to pull off a delicate balancing act: slowing enough to convince the Federal Reserve to cut interest rates, but not so much that it causes a recession, all while inflation remains under control.

Many things must go right for that to happen, and an encouraging signal came from a report on Wednesday saying inflation at the U.S. wholesale level unexpectedly slowed in August. It’s a relief following months of data suggesting inflation would be tough to get under the Fed’s target of 2%, particularly with President Donald Trump’s tariffs pushing upward on prices.

A potentially more important report is coming today, which will show how bad inflation has been for U.S. households, but Wednesday’s update “essentially rolled out the red carpet for a Fed rate cut next week,” according to Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley.