The U.S. stock market experienced an upswing on Tuesday following the release of inflation data that came in below expectations. The Consumer Price Index (CPI) for October rose by a modest 0.1%, down from 0.3% in September and below the anticipated 0.2%. This dip in inflation figures has caused optimism among investors, prompting a rally across major indices.
The Dow Jones Industrial Average saw a gain of over 500 points, translating to a 1.5% increase. The S&P 500 recorded a robust 1.8% uptick, while the Nasdaq Composite led the charge with a 2.1% climb. Impressively, gains were observed across all 11 major sectors of the S&P 500.
Technology stocks, including industry giants such as Apple, Amazon, and Microsoft, recorded gains exceeding 2%. Energy stocks also joined the rally, with Exxon Mobil rising 2.5% and Chevron surging by 3%.
Investors speculated that the cooling inflation data might signal a potential slowdown in the Federal Reserve's ongoing interest rate hiking cycle. The central bank's aggressive stance against inflation has raised concerns about a possible economic downturn, but the recent data suggests a more measured approach.
