U.S. stocks closed higher following a surprisingly encouraging update on inflation.

The S&P 500 rose 0.9% Wednesday, closing at another record high, after the Federal Reserve also gave reassurance that it still sees a cut to interest rates as likely this year. The Nasdaq composite rose 1.5%, also beating the all-time high it set a day earlier. The Dow Jones Industrial Average lagged the market and slipped 0.1%.

Treasury yields tumbled in the bond market after the report in the morning showed a slowdown in inflation in consumer prices during May. The yield on the 10-year Treasury note fell to 4.33%.

On Wednesday:

The S&P 500 rose 45.71 points, or 0.9%, to 5,421.03.

The Dow Jones Industrial Average fell 35.21 points, or 0.1%, to 38,712.21.

The Nasdaq composite rose 264.89 points, or 1.5%, to 17,608.44.

The Russell 2000 index of smaller companies rose 32.75 points, or 1.6%, to 2,057.10.

For the week:

The S&P 500 is up 74.04 points, or 1.4%.

The Dow is down 86.78 points, or 0.2%.

The Nasdaq is up 475.31 points, or 2.8%.

The Russell 2000 is up 30.55 points, or 1.5%.

For the year:

The S&P 500 is up 651.20 points, or 13.7%.

The Dow is up 1,022.67 points, or 2.7%.

The Nasdaq is up 2,597.08 points, or 17.3%.

The Russell 2000 is down 30.03 points, or 1.5%.