On June 10, the S&P 500 Index and the Nasdaq Composite Index hit new highs, but investors remained cautious ahead of this week's consumer price report and the Federal Reserve policy announcement.

Nvidia (NASDAQ: NVDA) shares rose 0.7% due to a 10-for-1 stock split, boosting both the Nasdaq Composite and S&P 500 indices. Some investors anticipate that this chip manufacturer will be included in the Dow Jones Industrial Average.

The consumer price index report for May is scheduled for release on Wednesday, concurrent with the conclusion of the Federal Reserve's two-day policy meeting. The Fed is expected to maintain interest rates, offering new economic and policy projections. Investors will be looking for signs of when the Fed might begin to lower interest rates.

Additionally, the CPI report will be released Wednesday morning, with the market assessing economic and inflation conditions from the Fed's perspective.

The Dow Jones Industrial Average rose by 69.05 points, or 0.18%, to 38,868.04 points. The S&P 500 Index gained 13.8 points, or 0.26%, to 5,360.79 points, and the Nasdaq Composite Index rose by 59.40 points, or 0.35%, to 17,192.53 points.

Following the release of a strong jobs report last week that surpassed expectations, traders have lowered their expectations of a rate cut in September, with the probability of a rate cut standing at 50%.

Apple (NASDAQ: AAPL) shares fell by 1.9% on the first day of the company's annual developer conference, as investors were eager to learn how the company plans to incorporate artificial intelligence into its products. Southwest Airlines (NYSE: LUV) rose by 7% after activist investor Elliott Management announced a $1.9 billion investment in the company. Diamond Offshore Drilling (OTC: DOFSQ) saw a 10.9% increase in its stock price after oilfield services company Noble announced its acquisition of its smaller competitor for $1.59 billion. Noble's stock price rose by 6.1%.

On the New York Stock Exchange, advancers outnumbered decliners by a ratio of 1.06 to 1, while on the Nasdaq, advancers outnumbered decliners by a ratio of 1.01 to 1.

Nineteen stocks on the S&P 500 Index hit 52-week highs, while five stocks hit 52-week lows. The Nasdaq Composite Index saw 56 stocks hit 52-week highs and 177 stocks hit 52-week lows.

Trading volume in the U.S. markets amounted to 10.39 billion shares, compared to an average of 12.8 billion shares over the preceding 20 trading days.