The Dow Jones Industrial Average and the S&P 500 rose on Wednesday after inflation jumped, but not by quite as much as investors feared when stripping out volatile food and energy prices.

The S&P 500 traded up 0.2% to 4,447.70, notching an all-time high. 

July's Consumer Price Index released Wednesday showed prices jumped 5.4% since last year, compared to expectations of 5.3%, according to economists surveyed by Dow Jones. The government said CPI increased 0.5% in July on month-to-month basis.

But investors were concentrating on the core rate of inflation, which could signal inflation will remain tempered and the economy will remain strong. CPI, excluding energy and food prices, rose by 0.3% last month, below the 0.4% increase expected. Core prices still jumped 4.3% on a year-over-year basis.

U.S. stock futures were mixed early Thursday after the market shrugged off the July inflation report and the Dow Jones Industrial Average and S&P 500 hit records.

The Nasdaq Composite traded about 0.1% lower to 14,765.13.

Treasury yields dipped after the inflation report and a 10-year note auction showed strong demand. Dallas Fed President Robert Kaplan told CNBC the Fed should start removing stimulus in October, adding to the decline in yields.

Investors are keeping an eye on the weekly jobless claims data, which will be released Thursday morning.