The Globe and Mail reports in its Wednesday edition that North American stock indexes advanced Tuesday, as strong big-bank results and a cooler-than-expected U.S. inflation report boosted risk appetite amid rising Middle East tensions. A Reuters dispatch to The Globe says a rebound in chip shares put the Nasdaq out front, while the gains for the Dow and Toronto Stock Exchange were more subdued. The Labor Department's U.S. Consumer Price Index showed inflation cooling in June, largely owing to abating energy price pressures amid last month's signs of progress in U.S.-Iran peace negotiations. The inflation report put downward pressure on bond yields in both Canada and the U.S. after they rose Monday. U.S. Federal Reserve Chair Kevin Warsh sat for his first congressional testimony since his confirmation, in part to lay out the Fed's plan to contain upward price pressures. Still, following the CPI report, financial markets were pricing in an 83.4-per-cent likelihood that the Fed will let its key interest rate stand at the conclusion of its July policy meeting. The S&P/TSX Composite Index ended 67.82 points at 35,320.54. The materials sector gained 1.38 per cent as metal prices jumped against a weaker greenback.