U.S. stocks advanced as softer-than-expected inflation data buoyed sentiment and reinforced hopes for a steady corporate earnings season, lifting major indexes near records.

The S&P 500 rose 0.38% to about 7,543.59 and the Nasdaq Composite gained 0.9% to roughly 26,107, while the Dow Jones Industrial Average was little changed, up 0.02% at about 52,508. Chip and technology shares led the advance.

The move followed a lighter-than-forecast June consumer-price report, which eased concerns that sticky inflation would force the Federal Reserve to hold rates higher for longer. Easier financial conditions tend to support richly valued growth stocks.

The session was uneven beneath the surface. Apple traded near all-time highs, a standout in a market rewarding durable earnings, while semiconductor names lagged: Advanced Micro Devices slipped about 3.98% as investors rotated out of chip equities.

Earnings season is ramping, with many large companies expected to post a second straight quarter of profit growth above 20%. Results from Netflix and major banks are being watched for signals on the consumer and on margins.

Geopolitical risk tempers the optimism. Tensions involving Iran and the Middle East have kept energy markets volatile, and the path of interest rates remains uncertain. For now, softening price data has given investors a reason to lean back into equities.

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