Treasury yields fell and stocks rose as data showing a slowing in inflation fueled speculation that the Federal Reserve is nearing the end of its rate hike cycle.

The S&P 500 reached its highest level since April 20, 2022, while the Nasdaq 100 outperformed. Two-year yields, which are more sensitive to policy changes in the near future, fell 13 basis points to around 4.75%. The US currency fell to a 15-month low. Brent crude surpassed $80 per barrel for the first time since May.

The consumer price index increased 3% year on year in June. The core measure, which economists believe is a better indicator of underlying inflation, rose 4.8%, the slowest rate since 2021 but still well above the Fed's target.

In corporate news, Meta and Nvidia led gains in megacaps. Domino's Pizza has partnered with Uber on a third-party ordering agreement. Microsoft is set to reapply for UK approval of its takeover of Activision Blizzard, but regulators warn that any antitrust fixes will result in a new investigation.