Stocks jumped Tuesday after a lighter-than-expected consumer prices report for November raised expectations that inflation is peaking.
The Dow Jones Industrials rocketed 431.31 points, or 1.3%, to 34,436.35.
The S&P 500 gathered 89.91 points, or 2.3%, to 4,080.47
The NASDAQ Composite Index surged 346.23 points, or 3.1%, to 11,489.97.
Tech shares, which have been hit the hardest from rising inflation and rates in 2022, led the gains Tuesday. Apple, Microsoft, Amazon and Alphabet all jumped more than 3%. Netflix also added 3%. Tesla gained nearly 3%.
The consumer price index rose just 0.1% from the previous month, and increased 7.1% from a year ago, the U.S. Labor Department reported Tuesday. Economists surveyed by Dow Jones had been expecting a 0.3% monthly increase and a 7.3% 12-month increase. Excluding volatile food and energy prices, so-called core CPI rose 0.2% on the month and 6% on an annual basis, compared to respective estimates of 0.3% and 6.1%.
Prices for the 10-year Treasury were up sharply, lowering yields to 3.44% from Monday's 3.62%. Treasury prices and yields move in opposite directions.
Oil prices picked up $1.84 to $75.01 U.S. a barrel.
Gold prices surged $42.10 to $1,834.40 U.S. an ounce.