Stocks Rise on Positive CPI Report, Focus Shifts to Fed

US stocks closed higher after the latest consumer inflation report showed a moderation in inflation. All eyes are now on the Federal Reserve's monetary policy decision, with traders expecting a pause in interest rate hikes. The Nasdaq Composite, Dow, and S&P 500 all closed in the green, with materials and energy sectors leading the gains. The CPI report for May showed a Y/Y deceleration in both the headline number and the core CPI figure. The expectations for no rate hike tomorrow have jumped up by a significant margin, with markets now pricing in a ~94% probability of the Fed holding steady.