Market Optimism Grows Ahead of Key Inflation and Fed Rate Decisions

Stocks gave up some of their advance as traders awaited a crucial US inflation print and assessed the impact of economic stimulus from China. Confidence is mounting that the latest reading of the US consumer price index due Tuesday will show pressures have cooled enough to allow Federal Reserve policymakers to put their tightening campaign on pause Wednesday. Falling energy prices in May should offset increases in other categories to leave the headline index roughly unchanged. Investors chasing the recent rally in stocks sold bonds, with the yields on both two-year Treasuries and UK gilts trading near financial-crisis highs.