The consumer-price index for May showed prices rose 4% from a year earlier, a cooldown from the 4.9% increase in April. Core CPI, which excludes volatile food and energy categories, remained more elevated at 5.3%.
The data comes as the Federal Reserve kicks off its policy meeting today. The central bank has been raising rates to bring inflation down to its 2% target and is expected to announce tomorrow that it’s holding rates steady. Investors will be watching for any clues that the Fed could resume rate hikes later this summer or in the fall.
Stock edged higher. The S&P 500, Dow Jones Industrial Average and tech-heavy Nasdaq all advanced.
Oil prices gained. Brent futures rose almost 4%, after sliding 3.9% Monday, pushing up energy stocks.
Treasury yields edged up. The yield on the 10-year note was 3.772%, from 3.763% a day earlier.
Tesla’s hot streak continued. The electric carmaker is on pace for its 13th-straight gain, which would be its longest winning streak ever.
Bank stocks rose. Shares in JP Morgan, Bank of America and Goldman Sachs all ticked up.