01:32 PM EDT, 06/12/2024 (MT Newswires) -- US benchmark equity indexes were higher midday Wednesday after May consumer inflation cooled more than expected annually while markets awaited the Federal Reserve's latest monetary policy decision at 2 pm ET.

The Nasdaq Composite was up 1.8% at 17,658.9, while the S&P 500 rose 1.1% to 5,436. The Dow Jones Industrial Average advanced 0.2% to 38,805.7. Among sectors, technology led the gainers, while energy posted the steepest decline.

In economic news, the US consumer price index was flat last month, easing from a 0.3% increase in April, according to the Bureau of Labor Statistics. Analysts were expecting the pace to decelerate to 0.1%, according to a Bloomberg-compiled survey. Annually, inflation slowed to 3.3% in May from the prior month's 3.4%, which was the Wall Street consensus.

"The CPI report for May came in a bit better than we dared hope for given the string of disappointing readings to start the year," BMO Economics said in a note. "If sustained, it will keep Fed rate-cut expectations that we have penciled in for September and December alive and well."

The central bank's Federal Open Market Committee is widely expected to maintain interest rates Wednesday -- which would mark a seventh consecutive pause -- and again at its July meeting, according to the CME FedWatch Tool. Bets for a September cut jumped to almost 61% Wednesday from about 47% the day before, the data showed.

Mortgage applications in the US rebounded robustly last week as rates across most loan types declined, the Mortgage Bankers Association said.

The US 10-year yield sank 14.4 basis points to 4.26% intraday, while the two-year rate slid 14.9 basis points to 4.69%.

In company news, Oracle (ORCL) shares surged 12%, the top performer on the S&P 500. The software maker late Tuesday gave an outlook for annual growth in its fiscal first-quarter revenue and earnings, and announced cloud partnerships with OpenAI and Alphabet's (GOOG, GOOGL) Google ( GOOG ).

Valero Energy ( VLO ) saw the second-steepest decline on the S&P 500 Wednesday, down 3.4%, as Goldman Sachs adjusted its price target on the stock to $162 from $168.

Broadcom ( AVGO ) and Dave & Buster's Entertainment (PLAY) are among the companies scheduled to report their latest financial results after the closing bell.

West Texas Intermediate crude oil rose 1.1% to $78.76 per barrel intraday.

Gold was up 1.2% at $2,353.82 per ounce, while silver jumped 3.4% to $30.22 per ounce.