Stocks rose Tuesday as key inflation data came in line with expectations and investors bet that the risk of contagion from the collapse of Silicon Valley Bank and Signature Bank have been contained. The Dow Jones Industrial Average climbed over 300 points, while the S&P 500 and Nasdaq Composite added 1.7% and 2%, respectively.
Here's how the market settled on Tuesday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
In focus on Tuesday, February's Consumer Price Index (CPI) report showed prices rose 6.0% on an annual basis, marking the smalling increase since September 2021 and coming in-line with analyst estimates. Core CPI, which excludes food and energy prices, also grew in-line with expectations at 5.5%.
On a month-to-month basis, CPI rose in-line with estimates at 0.4% in February over January, while Core CPI came in slightly higher-than-expected over January at 0.5%.
The more encouraging inflation data comes at a crucial moment for the Federal Reserve, as officials are set to issue another policy decision next week amid the second and third largest bank failures since the 2008 financial crisis. The Commerce Department will release February's U.S. retail sales print on Wednesday, which will give policymakers more clues on the health of the American consumer.
In the wake of positive inflation data, investors sought to buy the dip in financial stocks on Tuesday following two session of deep selloffs. The SPDR S&P Regional Banking ETF
Bank sentiment across the sector also increased, with major banks like Bank of America
