NEW YORK, July 11 (Xinhua) -- U.S. stocks extended gains on Tuesday as investors waited for a crucial report which is expected to show a slowdown in inflation.

The Dow Jones Industrial Average rose 317.02 points, or 0.93 percent, to 34,261.42. The S&P 500 added 29.73 points, or 0.67 percent, to 4,439.26. The Nasdaq Composite Index increased 75.22 points, or 0.55 percent, to 13,760.70.

Ten of the 11 primary S&P 500 sectors ended in green, with energy and utilities leading the gainers by rising 2.20 percent and 1.24 percent, respectively. Meanwhile, the health sector remained unchanged.

U.S. stocks held onto gains on Tuesday before the consumer price index (CPI) report due on Wednesday. The CPI report is expected to show a 3.1 percent year-over-year headline inflation increase in June, a continued slowdown from May's 4 percent annual gain, falling to its lowest levels since March 2021, according to estimates from Bloomberg.

However, core inflation, which excludes volatile items like food and energy, is expected to be more elevated at 5 percent year-over-year in June, according to Bloomberg. Many analysts believe that core inflation remains stubbornly high and don't expect softening headline inflation to stymie interest-rate hikes.

"I think you're going to see further evidence that the CPI-measured inflation is continuing its descent. But that's not good enough for the Fed. The Fed worries about there being a wage price spiral," said Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management Company, in an interview with CNBC.

The Federal Open Market Committee (FOMC) has around 92 percent probability to raise the benchmark interest rate by another 25 basis points at its July meeting, data from the CME FedWatch Tool showed Tuesday afternoon.

Investors are also waiting for second quarter corporate earnings reports. Big bank names like JPMorgan Chase, Citigroup and Wells Fargo will announce their results later this week, with the health of the banking sector in focus.

"We suspect some companies will begin to walk down the estimates, while others will continue to tell a more optimistic story. In short, this earnings season should matter more than the prior two, and should provide significant alpha opportunities for investors in terms of both longs and shorts," said Mike Wilson, chief investment officer and chief U.S. equity strategist with Morgan Stanley.