A wave of bullish sentiment swept through Wall Street on Tuesday after lower-than-expected producer inflation data solidified expectations for Federal Reserve rate cuts, prompting speculators to increase bets on a more significant 50-basis-point move. The Producer Price Index (PPI) edged higher by only 0.1% from the previous month, falling short of the anticipated 0.2% increase, and marked a 2.2% rise year-over-year, down from the previous 2.7% print. Traders adjusted their bets on a September rate cut, now assigning a higher probability to a larger 50-basis-point cut at 55% compared to a 45% chance for a smaller 25-basis-point reduction. The S&P 500 rose 1.1%, the Nasdaq climbed 1.8% and the Dow Jones gained 250 points or 0.6% by midday trading in New York. Treasury yields fell across all maturities, with the rate-sensitive two-year yield declining by 6 basis points. The U.S. dollar ...