Stocks rose Tuesday, boosted by another cooler-than-expected inflation report, as investors were encouraged that the Federal Reserve will soon ease their rate hiking campaign. The Dow Jones Industrial Average ended up about 0.2%, while the S&P 500 and Nasdaq Composite gained 0.9% and 1.5%, respectively.
Here's how the market settled on Tuesday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Driving market moves, October's producer price index (PPI) rose by a less-than-expected 8% annually and 0.2% month-to-month, easing from September's year-to-year gain of 8.4% and off its all-time peak of 11.7% recorded in March.
Excluding food, energy and trade services, core PPI rose 0.2% on the month and 5.4% on the year in October. The PPI report comes after October's lower-than-expected CPI report last Thursday, driving a late week rally.
Retail sentiment was boosted by earnings reports from Home Depot
However, Walmart warned that inflation is impacting consumers across the market, including those in higher income brackets.
"We've continued to gain grocery market share from households across income demographics with nearly three-quarters of the share gain coming from those exceeding $100,000 in annual income," John David Rainey, executive vice president and chief financial officer at Walmart, said on the earnings call Tuesday.
Market participants will react to more retail data on Wednesday, including October's retail sales report and earnings reports from Target
Elsewhere, traders are navigating through fresh geopolitical news on Tuesday. This week, President Joe Biden met with Chinese President Xi Jinping, marking the first meeting between the leaders since Biden took office.
"As leaders of our two nations, we share a responsibility, in my view, to show that China and the United States can manage our differences, prevent competition from becoming anything ever near conflict, and to find ways to work together on urgent global issues that require our mutual cooperation," Biden said at the opening of the meeting.
Separately, Wall Street began to react to reports that a Russian missile crossed into Poland on Tuesday. The White House said it was unable to confirm an AP report at the time of this writing.