04:36 PM EDT, 06/12/2024 (MT Newswires) -- The S&P 500 and the Nasdaq Composite closed at record highs Wednesday for the third straight session as consumer inflation cooled more than expected in May, while the Federal Reserve's updated outlook indicated one rate cut this year, down from three forecast in March.

The technology-heavy Nasdaq jumped 1.5% to 17,608.4, while the S&P 500 rose 0.9% to 5,421. The Dow Jones Industrial Average fell 0.1% to 38,712.2. Technology led the gainers among sectors, 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 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."

Official producer prices data for May are scheduled to be released Thursday.

The US 10-year yield fell 7.6 basis points to 4.33%, while the two-year rate slid 7.2 basis points to 4.76%.

The central bank's Federal Open Market Committee held interest rates steady at 5.25% to 5.50%, its seventh straight pause and in line with Wall Street's projections. In a bid to combat inflation, policymakers started tightening monetary policy in March 2022 with their last rate hike coming last July.

The FOMC said Wednesday there has been "modest further progress" toward the 2% inflation target in recent months.

West Texas Intermediate crude oil rose 0.6% to $78.34 per barrel. Commercial crude stockpiles in the US increased 3.7 million barrels to 459.7 million in the week ended Friday, the Energy Information Administration said. The consensus estimate on Bloomberg was for a decline of 1.5 million.

In company news, Oracle (ORCL) shares surged 13%, the top performer on the S&P. The software maker on Tuesday reported an increase in fiscal Q4 sales and unveiled partnerships with Microsoft ( MSFT ) and Alphabet's (GOOG, GOOGL) Google ( GOOG ).

Nike's ( NKE ) trademark application for the capitalized version of the word "footware" was dismissed by the General Court of the European Union, with the shoemaker ordered to pay legal costs in Puma's favor, media reports said. Nike ( NKE ) shares fell 2.3%, the steepest decline on the Dow.

Valero Energy ( VLO ) shares dropped 3.4%, among the biggest declines on the S&P. Goldman Sachs cut its price target on the stock to $162 from $168.

Gold rose 0.5% to $2,337.30 per troy ounce, while silver jumped 1.5% to $29.67 per ounce.