Treasury yields fell and stocks rose as data showing a slowdown in inflation bolstered speculation the Federal Reserve is close to ending its rate hikes.

The S&P 500 finished at its highest since April 2022, while the Nasdaq 100 outperformed. Two-year yields, which are more sensitive to imminent policy moves, slid 13 basis points to around 4.75 per cent. The dollar slipped to a 15-month low. Brent crude climbed above US$80 a barrel for the first time since May.

The consumer price index rose 3 per cent in June from a year ago. The core measure — which economists view as the better indicator of underlying inflation — advanced 4.8 per cent, the lowest since 2021 — still well above the Fed’s target.

“It’s too early to pop the champagne, but it’s not too early to start chilling the bottle,” said Ronald Temple, chief market strategist at Lazard. “Better-than-expected data increases the likelihood that a Fed rate increase on July 26 will be the last of this cycle.”

In corporate news, Meta Platforms Inc. and Nvidia Corp. led gains in megacaps. Domino’s Pizza Inc. jumped on a third-party ordering agreement with Uber Technologies Inc. Microsoft Corp. is set for a second shot at winning UK approval for its takeover of Activision Blizzard Inc., but regulators warn that any antitrust fixes would trigger a new probe.

Key events this week:

• China trade, Thursday
• Eurozone industrial production, Thursday
• U.S. initial jobless claims, PPI, Thursday
• U.S. University of Michigan consumer sentiment, Friday
• U.S. banks kick off earnings, Friday

Some of the main move in markets:

Stocks

• The S&P 500 rose 0.7 per cent as of 4 p.m. New York time
• The Nasdaq 100 rose 1.2 per cent
• The Dow Jones Industrial Average rose 0.3 per cent
• The MSCI World index rose 1.2 per cent

Currencies

• The Bloomberg Dollar Spot Index fell 0.9 per cent
• The euro rose 1.2 per cent to US$1.1136
• The British pound rose 0.5 per cent to US$1.2992
• The Japanese yen rose 1.4 per cent to 138.46 per dollar

Cryptocurrencies

• Bitcoin fell 1 per cent to US$30,264.82
• Ether fell 0.3 per cent to US$1,868.45

Bonds

• The yield on 10-year Treasuries declined 11 basis points to 3.86 per cent
• Germany’s 10-year yield declined seven basis points to 2.58 per cent
• Britain’s 10-year yield declined 15 basis points to 4.51 per cent

Commodities

• West Texas Intermediate crude rose 1.6 per cent to US$76.01 a barrel
• Gold futures rose 1.4 per cent to US$1,963.50 an ounce