U.S. stocks are rising after cooler-than-expected inflation stokes rate hopes By Investing.com

Investing.com — U.S. stocks jumped after a cooler-than-expected inflation report for June revived hopes the Federal Reserve was nearing the end of its interest rate increases.

At 10:00 ET (14:00 GMT), the was up 262 points or 0.8%, while the was up 0.9% and the was up 1.2%.

June inflation stokes hopes for end to rate hikes

Consumer prices cooled in June, raising hopes that the would reach the end of its rate hikes sooner rather than later. It is still expected to raise them by another quarter of a percentage point when it meets later in July.

Headline and in the U.S. rose at a slower-than-expected pace last month. The Bureau of Labor Statistics said the increased 3.0% annually, down from 4.0% in May. Economists had forecast a rise of 3.1%.

It was the lowest level in more than two years and represented a steep deceleration from 9.1% last June.

For the month, rose 0.2%, up from 0.1% in the prior month. Estimates had called for 0.3%.

Coming up: Beige Book and producer prices

The cooler reading stoked hopes the rate hikes could end soon. The Dow is already on pace for its best week since March.

Another closely watched reading – – is due out Thursday morning.

Later today, the Fed will release its , which is a periodic survey of its district banks. The report helps break down economic and financial trends being observed throughout the country.

Microsoft jumps after Activision deal go-ahead

Microsoft Corporation (NASDAQ:) shares were up 2.2% after a federal judge cleared the way for it to close its acquisition of Activision Blizzard (NASDAQ:) as early as next week. Federal competition regulators had tried to block the deal on antitrust grounds.

Bank stocks are the headline earnings this week, kicking the season off on Friday with reports from JPMorgan (NYSE:), Citigroup (NYSE:), and Wells Fargo (NYSE:). JPMorgan was up nearly 1% in Wednesday trading. Analysts are listening to what executives say about business and consumer spending trends.

Oil was rising. was up 1.3% to $75.84 a barrel, while was up 1% to $80.20. was up 1.2% to $1,959.