*

May CPI data unexpectedly flat

*

Oracle rallies on double-digit FY25 revenue growth

forecast

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Fed leaves rates unchanged

*

Indexes: Dow down 0.1%, S&P 500 up 0.9%, Nasdaq up 1.5%

(Updates to 4:10 p.m. ET)

By Caroline Valetkevitch

NEW YORK, June 12 (Reuters) - The S&P 500 and Nasdaq

posted record closing highs for a third straight day on

Wednesday after inflation data came in softer than expected but

the indexes ended off the day's highs as the Federal Reserve

projected only one interest rate cut this year.

The Fed's March projections included three

quarter-percentage-point reductions. The U.S. central bank, in a

statement at the end of its June 11-12 meeting, also said it

left its policy rate unchanged, as expected.

Stocks were choppy following the news and press conference

with Fed Chair Jerome Powell, with the S&P 500 and Nasdaq paring

gains late and the Dow finishing near flat.

Stocks opened higher after the Labor Department reported

that the U.S. Consumer Price Index was unexpectedly unchanged in

May due to cheaper gasoline.

"The CPI number was certainly cooler than estimates and

drove optimism to start the day but that was only half of

today's menu," said Michael James, managing director of equity

trading at Wedbush Securities in Los Angeles.

James said he would have expected the market to end

weaker after the Fed's update, noting that "the commentary was

hawkish and rate cut (expectations) were trimmed from three to

one."

Oracle shares jumped 13.3%, lifting the market,

after the software provider forecast double-digit revenue in

fiscal 2025 after the bell on Tuesday.

The Dow Jones Industrial Average fell 35.21

points, or 0.09%, to 38,712.21. The S&P 500 rose 45.71

points, or 0.85%, to 5,421.03 and the Nasdaq Composite

advanced 264.89 points, or 1.53%, to 17,608.44.

Just after the CPI report, traders boosted bets for a Fed

rate cut by September and another by December.

Apple's ( AAPL ) shares climbed 2.9%, extending Tuesday's strong

gains, and the company briefly once again became the world's

most valuable, dethroning Microsoft ( MSFT ) from the top spot.

Volume on U.S. exchanges was 11.80 billion shares,

compared with the 12.74 billion average for the full session

over the last 20 trading days.

Advancing issues outnumbered decliners on the NYSE by a

2.86-to-1 ratio; on Nasdaq, a 1.78-to-1 ratio favored advancers.

The S&P 500 posted 39 new 52-week highs and two new

lows; the Nasdaq Composite recorded 99 new highs and 80 new

lows.