04:33 PM EDT, 03/12/2024 (MT Newswires) -- US benchmark equity indexes closed higher Tuesday, with the S&P 500 hitting a new record, as official data showed consumer inflation accelerated last month.

The S&P 500 rose 1.1% to 5,175.3, surpassing its previous closing record of 5,157.4 set Thursday. The Nasdaq Composite jumped 1.5% to 16,265.6, while the Dow Jones Industrial Average advanced 0.6% to 39,005.5. Technology and communication services led the sector gainers. Utilities saw the steepest decline.

In economic news, the US consumer price index advanced 0.4% sequentially in February, the Bureau of Labor Statistics reported, matching the consensus compiled by Bloomberg. In January, consumer prices gained 0.3%. Annually, inflation accelerated to 3.2% from 3.1% in January, which was Wall Street's view for February.

"For a (Federal Reserve) that has become increasingly data-dependent, this morning's numbers are unlikely to give policymakers much further conviction that inflation remains on a sustained downward path to 2%," TD Economics said in a note. "With the economy still strong, Fed officials can afford to keep rates elevated into the summer and continue to wait for further signs of cooling on the inflation front before dialing back the policy rate."

Separately, Desjardins said policymakers will "definitely need to see a sharper drop" in inflation over the next few months, otherwise they won't be comfortable easing monetary policy in late spring.

Government data for February producer prices are scheduled to be released Thursday.

The US two-year yield rose 5.6 basis points to 4.59% Tuesday, while the 10-year rate gained 4.9 basis points to 4.15%.

Small business optimism in the US unexpectedly declined in February as owners indicated that inflation was their most pressing concern, the National Federation of Independent Business' latest survey showed.

"While inflation pressures have eased since peaking in 2021, small business owners are still managing the elevated costs of higher prices and interest rates," NFIB Chief Economist Bill Dunkelberg said. "The labor market has also eased slightly as small business owners are having an easier time attracting and retaining employees."

West Texas Intermediate crude oil fell 0.2% to $77.75 per barrel Tuesday.

In company news, Oracle (ORCL) shares surged nearly 12%, the top performer on the S&P 500. The software maker late Monday logged stronger-than-expected fiscal third-quarter earnings as cloud demand continued to grow.

Southwest Airlines ( LUV ) on Tuesday tempered its revenue expectations for the first quarter and said that Boeing ( BA ) delivery challenges will impact its 2024 capacity. The carrier's shares sank almost 15%, the steepest decline on the S&P 500.

Gold fell 1.2% to $2,162.8 per troy ounce, while silver slid 1.5% to $24.35 per ounce.