Stocks rose Tuesday after the release of new U.S. inflation data showed prices rose at a less-than-expected rate last month. The Dow Jones Industrial Average climbed over 100 points, while the S&P 500 and Nasdaq Composite increased by 0.7% and 1%, respectively.
Here's how the market settled on Tuesday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Tuesday's moves built on positive momentum from Monday's rally, as market participants await the Federal Reserve's final monetary policy decision of 2022 and look for clues on the central bank's rate hiking plans heading into the new year.
Boosting positive sentiment, data from the Bureau of Labor Statistics on Tuesday showed the consumer price index (CPI) in November rose just 0.1% month-to-month and 7.1% annually. Economists surveyed by Bloomberg had expected headline CPI to rise 0.3% over the prior month and 7.3% year-over-year.
Meanwhile, Core CPI--which excludes more volatile food and energy prices--rose 6.0% annually in November, down from the 6.1% annual increase seen in October.
Tuesday's data is the last economic report policymakers will see before making their final policy decision on Wednesday. Market participants see the latest CPI report as another sign that inflationary pressures are easing, signalling that the Fed may start slowing its aggressive rate-hiking campaign early next year.
The central bank is expected to issue a 50-basis-point rate increase at the conclusion of its two-day meeting Wednesday afternoon.
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