12:58 PM EDT, 06/12/2024 (MT Newswires) -- US equity indexes rose as inflation eased ahead of the June monetary policy announcement, enabling policymakers at the Federal Reserve to incorporate fresh data into their projections for interest rates this year.

The Nasdaq Composite jumped 1.7% to 17,633.9, with the S&P 500 up 1% to 5,430.2 and the Dow Jones Industrial Average 0.1% higher at 38,795.7. The Nasdaq and the S&P 500 hit new record highs as technology and real estate led the gainers. The energy sector was the steepest decliner intraday.

In economic news, the US seasonally adjusted consumer price index stood pat in May, below the 0.1% gain expected in a survey compiled by Bloomberg and cooling from a 0.3% increase in April, according to data released Wednesday by the Bureau of Labor Statistics. Core CPI, which excludes food and energy prices, rose 0.2% versus the consensus for a 0.3% gain. Core CPI rose by 0.3% in April.

The year-over-year overall and core CPI slowed to 3.3% and 3.4%, respectively, from 3.4% and 3.6% in the previous month.

The Federal Open Market Committee's interest-rate-setting meeting will unveil its June policy statement on Wednesday. It will, most likely, leave rates unchanged at 5.25% to 5.5% for the seventh consecutive meeting. But, the FOMC will probably "materially" revise down expectations for rate cuts currently at three as per the most recent Summary of Economic Projections, a note from Stifel said.

"This morning's cooler-than-expected CPI report should give the Fed growing confidence that its position of patience is appropriate," Stifel Chief Economist Lindsey Piegza said. "While one data point in either direction is not enough to force a near-term adjustment in policy, any indication of an improving inflationary picture adds credence to the argument the Fed is on a pathway to provide policy easing -- eventually."

FOMC participants can update interest-rate projections through to Wednesday morning, including after the CPI, a Scotiabank note said late last week. According to the CME Group's FedWatch Tool, the probability of a rate cut in September jumped to 61% by Wednesday afternoon from 47% on Tuesday.

The US 10-year yield sank 14.6 basis points to 4.26%, and a 15.2 basis-point plunge in the two-year pushed yield to 4.68%.

The US Dollar index slumped 0.9% to 104.31.

In company news, Oracle (ORCL) surged 12% intraday, the top performer on the S&P 500, after the technology giant reported an increase in fiscal Q4 sales and unveiled partnerships with Microsoft ( MSFT ) and Alphabet's (GOOG, GOOGL) Google ( GOOG ).

Apple ( AAPL ) has become the first brand to exceed $1 trillion in brand value, Kantar's BrandZ said in a global ranking report Wednesday. Shares of the iPhone manufacturer jumped 4.2% intraday, the top gainer on the Dow.

West Texas Intermediate crude oil rose 0.6% to $78.41 a barrel.

Gold was up 1.1% to $2,352.82 an ounce, and silver jumped 3.4% to $30.23.