US benchmark equity indexes closed higher Tuesday, with the Nasdaq Composite reaching a new record, as markets analyzed remarks by Federal Reserve Chair Jerome Powell and awaited official April consumer inflation data due Wednesday.

The technology-heavy Nasdaq rose 0.8% to 16,511.2, surpassing its previous closing record of 16,428.8 set in March. The S&P 500 gained 0.5% to 5,246.7, while the Dow Jones Industrial Average added 0.3% to 39,558.1. Technology and real estate led the gainers among sectors. Only consumer staples and energy closed lower.

Powell said the Federal Open Market Committee is likely to keep its benchmark lending rate elevated for an extended period as inflation is declining slower than projected, CNBC reported. Powell reportedly said he doesn't expect policymakers raising interest rates.

The FOMC tightened monetary policy by 525 basis points between March 2022 and July 2023 to combat inflation. It has kept interest rates unchanged since then, with its latest pause coming earlier this month.

The US two-year yield fell 3.6 basis points to 4.82% Tuesday, while the 10-year rate dropped 3.2 basis points to 4.45%.

Official data are likely to show Wednesday that the US consumer price index remained unchanged at 0.4% sequentially last month and slowed down to 3.4% from 3.5% on an annual basis, according to a Bloomberg-compiled consensus.

Government data showed Tuesday that US producer prices rebounded above market expectations sequentially in April, while wholesale costs logged the highest year-over-year increase in a year.

"After three earlier months of acceleration, Fed officials were looking to the April report as either confirmation of a temporary upward blip in the first quarter or a more lasting trend," Stifel said in a note. "This morning's hotter-than-expected report, even after accounting for the downward revisions to March, offers more evidence for the latter."

Small business optimism in the US increased for the first time this year in April, though inflation remained the most pressing problem for owners, the National Federation of Independent Business' latest survey showed.

West Texas Intermediate crude oil dropped 1.3% to $78.13 per barrel Tuesday.

In company news, Oracle (ORCL) executives are discussing a $10 billion deal to rent cloud servers over a period of years to Elon Musk's artificial intelligence startup xAI, the Information reported, citing a person involved in the talks. Oracle shares rose 3.9%, among the top gainers on the S&P 500.

Stocks that have gained substantial popularity on social media soared Tuesday, extending a rally triggered by the return of "Roaring Kitty," the persona behind the so-called meme stock craze in 2021. GameStop (GME) shares jumped 60% after closing 74% up on Monday. AMC Entertainment (AMC) shares advanced 33% after climbing 78% the session before.

Marathon Petroleum (MPC) shares fell 1.9%, among the steepest declines on the S&P 500, as BMO Capital adjusted its price target on the stock to $215 from $235, while Piper Sandler adjusted to $190 from $204.

Gold increased 0.8% to $2,362.10 per troy ounce, while silver jumped 1.4% to $28.83 per ounce.