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Stocks rose Tuesday as investors breathed a sigh of relief that a tamer-than-expected inflation report might give the Federal Reserve the green light to cut interest rates next month.
The Dow Jones Industrial Average ballooned 483.64 points, or 1.1%, to 44,458.73.
The S&P 500 index bounced 72.37 points, or 1.1%, to 6,445.82.
The NASDAQ hiked 296.50 points, or 1.4%, to 21,681.90
Stablecoin issuer Circle Internet Group jumped 12% after reporting a 53% year-over-year rise in its second-quarter revenue.
Tuesday’s fresh inflation data release reassured investors, who have feared that President Donald Trump’s broad tariff policies could spike prices in the U.S. economy.
The consumer price index rose 2.7% on an annualized basis in July, while a Dow Jones estimate had called for a 2.8% rise. So-called core CPI, which strips out volatile food and energy prices, increased by 3.1% year on year — slightly more than the expected 3%.
Expectations for lower rates soared following the report. Traders are now pricing in a near 91% chance of a rate cut next month. That’s up from a 85% chance before the data release. Traders also increased their bets on rate cuts in October and December.
Prices for 10-year Treasury were down Tuesday, raising yields to 4.29% from Monday’s 4.28%. Treasury prices and yields move in opposite directions.
Oil prices slid 81 cents to $63.15 U.S. a barrel.
Gold prices stepped back $5.70 to $3,399.00 U.S. an ounce.
