The S&P 500 and NASDAQ Composite were higher Wednesday as investors grew optimistic after a tamer-than-expected inflation
The Dow Jones Industrials recovered 52.43 points first thing Wednesday at 33,614.24.
The S&P 500 index re-attached 25.39 points to 4,144.56.
The NASDAQ Composite jumped 142.77 points, or 1.2%, to 12,322.32.
Overall market gains were contained as cyclical stocks, which are most closely linked to the economy, traded lower. Shares like Nike and Caterpillar were in the red as some investors reasoned that inflation was slowing because a recession is imminent or the country was already in one.
Shares of tech stocks like Alphabet, Nvidia and Tesla gained.
Airbnb dropped 11.5%, and Twilio fell 16%, on weak forecasts. Electric vehicle maker Rivian popped 9% on a narrower-than-expected loss. Earnings season continues Wednesday with results from Disney and Robinhood.
April consumer prices increased 4.9% from a year ago, which was less than the 5% annual increase expected by economists polled by Dow Jones. Month-over-month inflation matched expectations with a 0.4% increase in April.
Prices for the 10-year Treasury moved forward, lowering yields to 3.46% from Tuesday's 3.53%. Treasury prices and yields move in opposite directions.
Oil prices sank $1.31 to $72.40 U.S. a barrel.
Gold prices improved $2.10 to $2,045.00 U.S. an ounce.