All three major US stock indexes were up in late-morning trading Tuesday after a key inflation report could give the Federal Reserve cover to cut interest rates in September.

The US seasonally adjusted consumer price index rose by 0.2% in July, as expected in a survey compiled by Bloomberg as of 7:30 a.m. ET and following a 0.3% gain in June, the Bureau of Labor Statistics said Tuesday. Core CPI, which excludes food and energy prices, increased by 0.3%, as expected and following a 0.2% gain in June. The year-over-year rate for overall CPI held steady at 2.7%, while core CPI rose to a 3.1% year over year rate from 2.9% in June.

In company news, Chinese authorities have urged Chinese companies to avoid using Nvidia's (NVDA) H20 chips, especially for government-related activities, Bloomberg reported Tuesday, citing people familiar with the matter. The report also said that the Chinese government's push may also impact Advanced Micro Devices (AMD), but it noted that it remained unclear if there was any specific mention of the MI308 chip. Nvidia shares were flat around midday, while those of AMD shares were up 0.6%.

Gildan Activewear (GIL) is nearing a deal to acquire Hanesbrands (HBI) at almost $5 billion including debt, the Financial Times reported Tuesday, citing people familiar with the matter. Deal talks could be finalized by the end of the week, though they could still collapse, the report said. Gildan shares were down 4.9%, while those of Hanes were up 25.4%.

Cardinal Health (CAH) said Tuesday that The Specialty Alliance has agreed to buy Solaris Health from Lee Equity Partners and Solaris Health physician owners in a cash deal valued at $1.90 billion. Cardinal Health said it will own nearly 75% of The Specialty Alliance after deal completion, which is anticipated by year-end 2025. Cardinal shares were down 8.4%.

Elon Musk said Tuesday on X that Apple (AAPL) favors OpenAI over other artificial intelligence companies, including his xAI, on its App Store and threatened "immediate legal action." Apple shares were up 1.4%.

Intel (INTC) Chief Executive Lip-Bu Tan met with President Donald Trump and Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent, Trump said Tuesday on Truth Social. The meeting comes days after Trump called on the CEO to step down from his post. Intel shares were up 3.5%.

Price: 6.03, Change: +1.20, Percent Change: +24.74