S&P 500, Nasdaq post closing record highs after CPI, Fed

The S&P 500 and Nasdaq posted record closing highs for a third straight day on Wednesday after inflation data came in softer than expected but the indexes ended off the day's highs as the Federal Reserve projected only one interest rate cut this year.

The Fed's March projections included three quarter-percentage-point reductions. The U.S. central bank, in a statement at the end of its June 11-12 meeting, also said it left its policy rate unchanged, as expected.

Stocks were choppy following the news and press conference with Fed Chair Jerome Powell, with the S&P 500 and Nasdaq paring gains late and the Dow finishing near flat.

Stocks opened higher after the Labor Department reported that the U.S. Consumer Price Index was unexpectedly unchanged in May due to cheaper gasoline.

"The CPI number was certainly cooler than estimates and drove optimism to start the day but that was only half of today's menu," said Michael James, managing director