03:55 PM EDT, 08/12/2025 (MT Newswires) -- US equity indexes jumped on Tuesday, with the Nasdaq Composite and S&P 500 making records, as July's inflation data bifurcated government bond yields and sent bets in favor of a September interest-rate cut soaring.

The Nasdaq rose 1.3% to 21,660.1 in the final half-hour of trading, after hitting a record 21,670.66 intraday. The S&P 500 climbed 1.1% to 6,441.5, after making a fresh peak of 6,444.25 earlier in the session. The Dow Jones Industrial Average advanced 1% to 44,433.2, hovering close to its all-time high of 45,073.63.

All sectors were up toward the close of trading, with communication services, technology, and financials leading the gainers.

The US seasonally adjusted consumer price index rose 0.2% in July, as expected in a survey compiled by Bloomberg, and following a 0.3% gain in June, according to data released Tuesday by the Bureau of Labor Statistics. Core CPI, which excludes food and energy prices, increased 0.3%, as expected, after a 0.2% gain in June.

The year-over-year rate for overall CPI remained at 2.7%, while core CPI rose to a 3.1% year-over-year rate from 2.9% in the previous month, the strongest pace since February 2025.

"Tariffs do not appear to have had much of an impact on consumer prices just yet," Jefferies Chief US Economist Thomas Simons said in a research note. "Arguments against rate cuts that are based on concerns about inflation coming from tariffs need to see support via persistent increases in imported goods for consumers and in input materials for service providers that eventually force them to raise prices as well."

The odds of a 25-basis-point cut in interest rates in September jumped to 94% as of Tuesday afternoon, versus 86% a day ago, according to the CME FedWatch Tool.

US Treasury yields were, however, mixed. The 10-year yield climbed 1.8 basis points to 4.29% while the two-year rate dropped 2.5 basis points to 3.73%.

In company news, Cardinal Health ( CAH ) filed a registration with the US Securities and Exchange Commission for the potential sale of securities from time to time in one or more offerings. Evercore ISI cut its price target on Cardinal to $190 from $200. Shares of Cardinal fell 7%, the worst performer in the S&P 500.

West Texas Intermediate crude oil futures fell 1.1% to $63.23 a barrel, the lowest since early June.