US stocks rise as markets assess rates outlook and brace for new inflation data

• Major indexes rose on Tuesday ahead of new inflation data set to release midweek. 
• Markets are also weighing comments from the Fed officials on Monday indicating rates need to go higher. 
• Second-quarter earnings season will kick off on Friday with the big banks. 

US stocks climbed on Tuesday as traders weighed comments from Federal Reserve officials a day earlier and braced for an important inflation reading to drop on Wednesday. 

The Fed's Mary Daly and Loretta Mester both indicated on Monday that they see rates having to move higher in order to get inflation under control. The Fed paused rate hikes at its June meeting, though Mester said that if it were just up to her, she would have raised again. 

Meanwhile, Daly noted in remarks at the Brookings Institution that "a couple more" rate hikes are probably needed to get inflation to the Fed's 2% goal. 

The June consumer price index reading will publish on Wednesday, and traders are eagerly eyeing more signs that inflation continues to slow. Fundstrat's Tom Lee on Monday initiated a rare short-term buy call for the S&P 500 this week, predicting the benchmark index to rise to 4,500 by the end of the week on cooler CPI data. 

Here's where US indexes stood shortly after the 9:30 a.m. ET opening bell on Tuesday:

• S&P 500: 4,415.55, up 0.14%
• Dow Jones Industrial Average: 34,074.60, 0.38% (130.20 points)
• Nasdaq Composite: 13,706.74, up 0.16%

Here's what else is happening today: 

• Here are the 10 biggest surprises that changed the game for investors in the first half of the year.
• Bond king and former PIMCO exec Bill Gross warned that consumers are about to run out of cash, making recession more likely. 
• Tech gets all the attention in this year's stock market rally but some of the biggest stars have been outshined by some unlikely names. 
• Used car prices are crashing. That could be a big help to getting inflation lower. 

In commodities, bonds, and crypto: 

• Oil prices were up. West Texas Intermediate crude climbed 1% to $73.76 a barrel. Brent, the international benchmark, rose 1% to $78.44 a barrel. 
• Gold edged up 0.4% to $1,938.50 an ounce. 
• The 10-year Treasury yield dipped two basis points to 3.978%.
• Bitcoin inched up less than 1% to $30,417.