01:11 PM EDT, 08/12/2025 (MT Newswires) -- US equity indexes jumped in midday trading Tuesday, with the Nasdaq Composite and S&P 500 hitting all-time highs, as inflation data for July sent bets in favor of a September interest-rate cut soaring.

The Nasdaq was up 1.2% to 21,642.1, after hitting a record of 21,643.56 intraday. The S&P 500 traded up 1% to 6,434.2, after touching a peak of 6,436.66 earlier in the session. The Dow Jones Industrial Average advanced 1.1% to 44,446.8, hovering close to its all-time high of 45,073.63.

All sectors except real estate and utilities rose, with communication services the standout gainer, followed by financials and industrials.

The US seasonally adjusted consumer price index, a measure of inflation, rose by 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 by 0.3%, as expected following 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 92% as of Tuesday afternoon, versus 86% a day ago, according to the CME FedWatch Tool.

US Treasury yields were mixed, with the 10-year yield up 2.4 basis points to 4.3% while the two-year rate dropped 3.1 basis points to 3.72%, steepening the yield curve.

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. Shares fell 7.3% intraday, the worst performer in the S&P 500.

West Texas Intermediate crude oil futures fell 1% to $63.32 a barrel, the lowest since early June.

Rising supply from the Organization of the Petroleum Exporting Countries and concerns that demand from the US and China will be under pressure pushed crude oil lower, Commerzbank said in a note Tuesday. The upcoming meeting between Presidents Donald Trump and Vladimir Putin, scheduled for Friday, to broker a Russia-Ukraine truce boosted expectations of a ceasefire in Ukraine or a potential easing of sanctions on Moscow, the note said.

Gold futures slipped 0.1% to $3,399.8 per ounce.