Stocks Rise After Inflation Data; S&P, Nasdaq Near Eighth Win

U.S. stocks mostly rose during the New York trading session after inflation data came in roughly in line with economists' forecasts. The S&P 500 and Nasdaq moved higher and edged closer to an eighth consecutive gain; the Dow Jones Industrial Average was relatively flat as industrial and financial names showed mixed performance.

The report showed consumer price pressures tracked expectations, reducing immediate concerns about a renewed inflation spike. Traders increased positions in growth-sensitive stocks, with technology names leading gains and interest-rate sensitive sectors lagging.

Futures markets trimmed the chances of more aggressive Federal Reserve tightening and short-term Treasury yields declined. The 10-year Treasury yield eased from recent highs, helping support higher valuations for growth and technology firms.

Energy shares fell after oil prices slipped, and utilities moved lower following the drop in yields. Trading volume was typical for a session following a major economic release and volatility gauges cooled.

Corporate earnings continued to influence sector moves. Several large-cap technology companies beat estimates and raised guidance, boosting the Nasdaq, while mixed results among smaller companies kept the Russell 2000 more subdued.

A market strategist described the numbers as providing some breathing room on interest-rate expectations. Portfolio managers viewed the report as consistent with inflation stabilizing rather than reaccelerating.

Investors said they will watch upcoming jobs data and Federal Reserve communications for further signals. Market participants expect future moves to depend on incoming economic readings and corporate guidance.