03:51 PM EDT, 07/14/2026 (MT Newswires) -- (Updates with index/price moves and geopolitical news from the first paragraph.)

US equity indexes traded mixed as a sell-off in IBM ( IBM ) shares restrained the Dow Jones Industrial Average, while the Nasdaq Composite and the S&P 500 rose after the steepest drop in inflation in more than six years sent government bond yields sharply lower.

The tech-heavy Nasdaq advanced 1.1% to 26,146.1, with the S&P 500 up 0.5% to 7,550.2 ahead of Tuesday's close. The Dow Jones Industrial Average bucked the trend, trading steady at 52,547.8.

Interest-rate sensitive sectors, technology, and communication services, led gainers amid a broad-based rally. Healthcare, consumer staples, and real estate were the only decliners. IBM ( IBM ) shares sank 24%, the most on the Dow and the S&P 500, after the tech giant issued Q2 guidance below analysts' expectations.

Looking at gains from the top 20 companies with market capitalizations exceeding $200 billion, half were from the semiconductor industry, according to data compiled by Finviz. The top gainer was SK Hynix, up 24%, following its Nasdaq debut last Friday.

The US seasonally adjusted consumer price index fell by 0.4% month-over-month in June, the steepest drop since April 2020, compared with expectations for a 0.1% decrease in a Bloomberg-compiled survey and following a 0.5% increase in May, according to data released Tuesday by the Bureau of Labor Statistics. Core CPI, which excludes food and energy prices, held steady, compared with the 0.2% growth estimate, in line with May's growth.

US Treasury yields fell, with the 10-year down 3.7 basis points to 4.58% and the two-year lower by 7.4 basis points to 4.19%.

The probability of the Federal Reserve leaving its policy unchanged in July soared to 83% following the inflation data, from 58% a day ago, the CME FedWatch tool showed Tuesday. The likelihood of the policy pause continuing across September, October, and December also surged.

Meanwhile, President Donald Trump withdrew his proposal to charge a 20% toll on cargo transiting the Strait of Hormuz, according to his social media post on Tuesday. "Based on highly productive conversations with Middle East leadership, I have decided to replace the 20% United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States."

There will be a "FULL Blockade, but only on Ships coming to and from Iranian ports, or carrying anything have to do with Iranian cargo," Trump said on Truth Social. US Central Command says it will restart its naval blockade at 4 p.m. ET, CNN reported.

The front-month global benchmark North Sea Brent rose 2.2% to $85.09 a barrel, and the US West Texas Intermediate was up 1.9% to $79.59 a barrel, albeit both crude types were off session highs.