(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window)

*

Indexes up: Dow 0.13%, S&P 500 0.10%, Nasdaq 0.14%

*

GameStop ( GME ) falls after reporting decline in quarterly

revenue

*

US consumer prices rise moderately in May

(Updates after markets open)

By Kanchana Chakravarty and Sukriti Gupta

June 11 (Reuters) - Wall Street's main indexes nudged

higher on Wednesday, as a cooler-than-expected inflation report

calmed concerns around tariff-driven price pressures and fanned

expectations for interest rate cuts.

Data showed consumer prices increased only marginally in

May, but inflation is expected to accelerate in the coming

months due to the Trump administration's import tariffs.

Annually, headline inflation stood at 2.4%, lower than the

2.5% rise estimated by economists polled by Reuters.

"Longer term there's still concerns about Trump's tariffs

being inflationary but this report was better than expected and

it fuels hope that the Federal Reserve will be able to step in

with rate cuts later on this year," said Robert Pavlik, senior

portfolio manager at Dakota Wealth.

Traders are pricing in 48 basis points of rate cuts by

year-end, per data compiled by LSEG. They are penciling in a 57%

chance of a 25 bps cut in September, according to the CME

Group's FedWatch tool.

The S&P 500 and Nasdaq also traded near record levels, with

the S&P 500 about 1.6% below all-time highs touched in February,

and the Nasdaq about 2% below its record peaks reached in

December.

A day after officials from Washington and Beijing agreed on

a framework to put their tariff truce back on track, President

Donald Trump said the U.S. deal with China was done, with

Beijing to supply magnets and rare earth minerals.

Investors are awaiting more details from the two-day meeting

and hoping for a lasting resolution to the trade tensions that

have disrupted global markets for much of the year.

The U.S. stock market has rallied in recent weeks,

recovering from a slump in April sparked by Trump's "Liberation

Day" tariffs.

At 10:03 a.m. ET, the Dow Jones Industrial Average

rose 55.84 points, or 0.13%, to 42,922.71, the S&P 500

gained 6.13 points, or 0.10%, to 6,044.94 and the Nasdaq

Composite gained 26.66 points, or 0.14%, to 19,742.60.

Six of the 11 major S&P 500 sub-sectors rose, led by

healthcare stocks with an about 0.4% rise. On the flip

side, materials fell 0.7%.

Among stocks, Tesla advanced 1.7% after CEO Elon

Musk said he regrets some of the posts he made last week about

Trump, following an abrupt rift that has roiled the

electric-vehicle maker's shares.

Software development platform provider GitLab ( GTLB )

dropped 10.2% after reporting quarterly results.

Shares of videogame retailer GameStop ( GME ) fell 4.4%

after it reported a decline in first-quarter revenue.

Summit Therapeutics ( SMMT ) was down 1.9% after brokerage

Leerink Partners started coverage on the drug developer with an

"underperform" rating.

Advancing issues outnumbered decliners by a 2.25-to-1 ratio

on the NYSE and by a 1.32-to-1 ratio on the Nasdaq.

The S&P 500 posted 7 new 52-week highs and one new low while

the Nasdaq Composite recorded 48 new highs and 19 new lows

(Reporting by Kanchana Chakravarty and Sukriti Gupta in

Bengaluru; Editing by Devika Syamnath)