The Dow fell two tenths of one percent while the S&P 500 rose a tenth and the Nasdaq added three tenths.

Consumer prices rose slightly on a year-over-year basis though they jumped from the previous month.

The so-called core inflation rate - which excludes volatile food and energy prices - climbed more than forecast from the previous month. Toews Asset Management CEO Phil Toews said he would have expected the broader market to fall because of this, which didn't happen.

"with the CPI coming in just slightly above what people thought, at least on the core, there would be an expectation that markets might have sold off today and that the long bond might have moved higher. It's been interesting to see that we've just inched a little bit higher on the on the S&P 500. And so I think that creates optimism the downturn that we saw last week could potentially not continue."

Interest rate traders now see a 97% chance of the Fed holding rates in September, and a 61% likelihood of a pause in November, according to the CME FedWatch Tool.

Stock movers included Spirit Airlines which fell six percent after the low-cost carrier cut its third-quarter revenue outlook to reflect rising fuel prices.

And shares of Moderna gained three percent after the drugmaker said its flu vaccine met the primary goal in a late-stage trial.