12:31 PM EDT, 07/11/2024 (MT Newswires) -- US equity indexes traded mixed as government bond yields slumped after the headline annual inflation rate in June retreated for the third straight month.

The Nasdaq dropped 1.6% to 18,346.9, and the S&P 500 fell 0.8% to 5,589.7. The Dow Jones Industrial Average advanced 0.1% to 39,761.5. Among sectors, communication services and technology paced the decliners, while real estate, utilities and industrials led the gainers.

The US 10-year Treasury yield tumbled 10.3 basis points to 4.18%, with the two-, five-, and 30-year rates also slumping.

The probability that the Federal Open Market Committee will cut interest rates by 25 basis points in September soared to 83% by Thursday afternoon from 70% a day earlier as data from the Bureau of Labor Statistics showed Thursday month-over-month headline and core inflation rates were the weakest since May 2020 and January 2021, respectively.

The US seasonally adjusted consumer price index slipped 0.1% in June from May, compared with the 0.1% increase expected in a survey compiled by Bloomberg and a flat reading in May. Core CPI, which excludes food and energy prices, advanced 0.1%, below the consensus estimate for a 0.2% gain. Core CPI was up 0.2% in May.

The year-over-year headline and core CPI slowed to 3% and 3.3%, respectively, from 3.3% and 3.4% in the previous month. Headline CPI had slowed in April and May after increasing earlier this year.

The US Dollar index fell 0.6% to 104.42, while gold surged 1.9% to $2,424.41 an ounce. Silver climbed 2.9% to $31.75.

In company news, Delta Airlines (DAL) slumped 5%, the third-biggest decline on the S&P 500, after the carrier posted lower Q2 adjusted earnings.

Shares of Costco Wholesale ( COST ) dropped 3.4% after the company announced an increase in membership fees and reported an increase in net sales over five weeks.

West Texas Intermediate crude oil climbed 0.7% to $82.67 a barrel.