US stocks end higher as inflation data cements bets on rate hike pause

The S&P 500 and Nasdaq closed at their highest levels in 14 months following data that showed modest increases in consumer prices. The slight increase in inflation has buoyed the view that the Federal Reserve may refrain from raising interest rates today. Meanwhile, Nvidia rose 3.9% and became the first chipmaker to have a market capitalization of above $1tn. However, its smaller rival, Advanced Micro Devices, dropped by 3.6% after an uninspiring update on its AI strategy. Investors have priced in a 93% likelihood that the central bank will keep interest rates in the 5%-5.25% range while July may see a 62% chance of a 25-bps increase.