Stocks rose on Tuesday as oil prices continued to fall further below $100 and the latest inflation report came in lighter than expected. The Dow Jones Industrial Average climbed nearly 600 points, while the S&P 500 Index and Nasdaq Composite added about 2% and 3%, respectively, as major tech names rebounded from recent losses.
U.S. benchmark West Texas Intermediate (NYSE: USO) fell about 7% to $95.74 per barrel, after topping $130 about a week ago. International benchmark Brent Crude (NYSE: BNO) also declined by 7% to $98.99 per barrel.
Here's how the market settled on Tuesday:
S&P 500 Index (NYSE: SPY): +2.14% or +89.34 points to 4,262.45
Dow Jones Industrial Average (NYSE: DIA): +1.82% or +599.10 points to 33,544.34
Nasdaq Composite Index (NASDAQ: QQQ): +2.92% or +367.40 points to 12,948.62
Intel to invest $36 million to make chips in Europe:
Intel (NASDAQ: INTC) announced Tuesday that it plans to invest over 33 billion euros ($36 million) into boosting chipmaking according the European Union. The company plans to build two new factories in Magdeburg, Germany, with the factories using the most advanced chip manufacturing technology as part of an effort to produce chips that are two nanometers or less in width.
Intel plans to begin construction in the first half of 2023, with production starting in 2027, as long as the company is not met with regulatory issues.
The European Commission announced a new European Chipes Act last month taht will enable 15 billion euros in additional public and private investments until 2030.
"The E.U. Chips Act will empower private companies and governments to work together to drastically advance Europe's position in the semiconductor sector," Intel CEO Pat Gelsinger said in a statement. "This broad initiative will boost Europe's R&D innovation and bring leading-edge manufacturing to the region for the benefit of our customers and partners around the world. We are committed to playing an essential role in shaping Europe's digital future for decades to come."
Producer prices continued to rise in February:
U.S. producer prices posted another sharp increase in February on higher crude oil prices driven by Russia's war with Ukraine threatens to further disrupt global supply chains.
The Bureau of Labor Statistics' producer price index (PPI) for final demand rose 0.8% last month after accelerating 1.2% in January. PPI climbed 10% in the 12 months through February. Consensus economists expected an increase of 0.9% month-over-month and 10% for the year, according to Bloomberg.
Here's how market benchmarks started trading after open:
S&P 500 Index: +0.73% or +30.50 points to 4,203.61
Dow Jones Industrial Average: +0.71% or +232.81 points to 33,178.05
Nasdaq Composite Index: -2.04% or -262.59 points to 12,581.22