US Stock Market Today: S&P 500 Edges Higher, Nasdaq Off Record High After July Inflation Rises Moderately

US Stock Market Today:  Wall Street's main indexes inched higher on Tuesday after data showed inflation rose broadly in line with expectations in July, putting the US Federal Reserve on track to lower interest rates next month.

US government data showed that the consumer price index (CPI) rose by an expected 0.2% on a monthly basis in July, while on an annual basis it was slightly lower than what economists were projecting, drawing calls from US President Donald Trump to lower interest rates.

However limiting the optimism, the data suggested that the underlying inflation rose by 3.1% in the previous month as stock markets look for signs that tariffs and trade uncertainty were filtering into prices.

Yields on shorter-dated Treasury bonds - a reflection of interest rate expectations - moved lower after the data and interest rate futures showed traders are giving an 88.8% chance that the US Fed could lower interest rates by about 25 basis points in September.

The Dow Jones Industrial Average last rose 163.16 points, or 0.37%, to 44,139.85, the S&P 500 gained 20.65 points, or 0.32%, to 6,394.10 and the Nasdaq Composite gained 69.38 points, or 0.32%, to 21,454.78.

Eight of the 11 S&P 500 sectors were in gains, with energy in the lead with a 0.8% rise. Further providing some relief, US and China extended their tariff truce until November 10, staving off triple-digit duties on each other's goods.

US stocks have rallied in recent weeks and the tech-heavy Nasdaq touched a record high on Tuesday, boosted by better-than-expected earnings from technology majors, a detente between the US and its top trade partners and on expectations of rate cuts.

Wall Street's main indexes opened higher on Tuesday after the inflation data. The Dow Jones Industrial Average rose 75.4 points, or 0.17%, at the open to 44050.53. The S&P 500 rose 21.7 points, or 0.34%, to 6395.17​, while the Nasdaq Composite rose 122.0 points, or 0.57%, to 21507.441.

Data from BofA Global Research showed that inflows into US stocks last week were the largest in two years. Among single stocks, Intel rose 1.7% as Trump praised CEO Lip-Bu Tan following their meeting on Monday, days after seeking Tan's resignation.

US-listed shares of On Holding climbed 11.6% after the sportswear maker raised its annual sales forecast. Cardinal Health dropped 9% after the drug distributor said it will buy healthcare management firm Solaris for $1.9 billion.