Traders work on the floor during morning trading at the New York Stock Exchange (NYSE) on March 06, 2024 in New York City.
Spencer Platt | Getty Images
Stocks jumped Tuesday after fresh U.S. inflation data was about in line with expectations, clearing the way for investors to resume buying high-flying tech names such as Nvidia and Meta Platforms.
The Dow Jones Industrial Average gained 223 points, or 0.5%. The S&P 500 ticked up 0.9%, while the Nasdaq Composite advanced 1%.
Shares of chipmaker Nvidia climbed nearly 5%. Microsoft gained roughly 2.4%, and Meta popped 2.1%. Oracle surged more than 12% after beating Wall Street earnings estimates.
“[I]t’s proving difficult to see what may stop the market’s momentum, as earnings, inflation, and interest rates are moving in the right direction,” said Skyler Weinand, chief investment officer at Regan Capital.
The consumer price index climbed 0.4% in February and 3.2% year over year, the Bureau of Labor Statistics said on Tuesday. Economist polled by Dow Jones expected a 0.4% increase last month and 3.1% year-over-year, respectively. Core inflation, which strips out food and energy from the headline reading, climbed 0.4% in February, compared to a forecast gain of 0.3%.
Investors weren’t overly concerned the report would change expectations of the Federal Reserve cutting rates in June. That said, central bank’s path to a 2% target could remain “choppy,” according to LPL Financial chief economist Jeffrey Roach.
“The inflation experience is a bit like the concentration in the equity markets right now,” Roach said. “Outside of shelter and gas prices, inflation would be benign.”
Investors now turn their attention to the producer price index report due this week and the Fed’s next monetary policy meeting later this month.
