Stocks rose Tuesday after new inflation data showed price pressures slowed again in May, adding to investor optimism that the Federal Reserve could skip a rate hike when it next decides on policy this week.

The Dow Jones Industrial Average traded 107 points higher, or 0.3%. The S&P 500 climbed 0.5%, and the Nasdaq Composite advanced 0.5%. The S&P 500 and Nasdaq Composite each notched their highest closes since April 2022 on Monday.

A report Tuesday showed that the consumer price index in May increased 4% year over year, marking the slowest annual rate since March of 2021. Following the report, traders increased their bets that the Fed will keep rates unchanged on Wednesday after hiking at 10 consecutive meetings. The latest odds gave a 99% chance the central bank would keep rates at the current target rate of 5% to 5.25%, according to CME Group's FedWatch tool.

Source : CNBC