The U.S. stock market rallied to records on Tuesday after data suggested inflation across the country was a touch better last month than economists expected.

The S&P 500 rose 1.1% to top its all-time high set two weeks ago. The Dow Jones Industrial Average climbed 483 points, or 1.1%, and the Nasdaq composite jumped 1.4% to set its own record.

Stocks got a lift from hopes that the better-than-expected inflation report will give the Federal Reserve leeway to cut interest rates at its next meeting in September.

Spirit Airlines sounds the alarm on its future ability to stay in business

Just five months after emerging from Chapter 11 bankruptcy protection, Spirit Airlines is warning about its future ability to stay in business.

Spirit Aviation Holdings, the budget carrier’s parent company, says it has “substantial doubt” about its ability to continue as a going concern over the next year — which is accounting-speak for running out of money. In a quarterly report issued Monday, Spirit pointed to “adverse market conditions” that it’s continued to face after a recent restructuring and other efforts to revive its business.

That includes weak demand for domestic leisure travel, which Spirit said persisted in the second quarter of its fiscal year — among other challenges and “uncertainties in its business operations” that the Florida company expects to continue “for at least the remainder of 2025.”

Spirit’s shares tumbled more than 40% Tuesday, with the company’s stock closing at $2.10.