U.S. stock futures are rising Thursday, with all three major indexes poised to open at record highs amid optimism that inflation is cooling enough to see the Federal Reserve cut interest rates in the coming months.

US stocks surged on Wednesday, with the S&P 500 breaking its all-time record as traders took in cooling inflation numbers. All three benchmark indexes rose, while bond yields ticked lower. The Dow Jones Industrial Average surged 350 points while the 10-year Treasury fell 10 basis points to 4.344%.

Inflation cooled slightly in April, with consumer prices rising just 3.4% year-per-year, according to data from the Labor Department.

A Wall Street analyst breaks down what would make for a “good, bad or ugly” market response to Wednesday’s CPI data.

Take a look at how various assets are moving after the release of the April consumer-price index data: U.S. stock futures, bond yields, oil, gold and the dollar.