US stocks added to gains on Tuesday after key inflation data came in hotter than expected to help set expectations for the timing of a Federal Reserve interest-rate cut.
The S&P 500 (^GSPC) rose 0.5%, while the tech-heavy Nasdaq Composite (^IXIC) climbed roughly 0.7% after two days of losses. The Dow Jones Industrial Average (^DJI) ticked up about 0.3%.
Investors are digesting the Consumer Price Index release, one of the most important data inputs for the Fed in deciding its next policy move. Headline inflation met expectations with a monthly gain of 0.4% in February, following a 0.3% rise the month before. But “core” CPI — which strips out food and energy prices — came in at a 0.4% rise on the month and 3.1% gain on the year, both higher than estimates.
The CPI print is seen as influential, given Fed policymakers have said they want to be sure inflation is easing before beginning to bring rates down from their historically high level. Before the CPI release, S&P 500 traders were hedging moves of 0.9% in either direction for stocks.
Meanwhile, bitcoin (BTC-USD) continued its record-setting rally with a rise above $72,200. Surging inflows into crypto assets have helped the leading token to notch an almost 70% gain this year so far, prompting bulls to predict bitcoin could reach as high as $350,000 this year.
On the corporate front, Oracle (ORCL) shares jumped 12% in early trading on signs the database giant is making progress in cloud computing amid a tie-up with AI chip giant Nvidia (NVDA).
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Jessica Roberts is a seasoned business writer who deciphers the intricacies of the corporate world. With a focus on finance and entrepreneurship, she provides readers with valuable insights into market trends, startup innovations, and economic developments.