U.S. equities climbed as lower-than-expected inflation eased rate hike fears and energy stocks benefited from rising crude prices.
The S&P 500 closed 0.4% higher on Tuesday, supported by a softer retail inflation report that reduced concerns over aggressive Federal Reserve tightening. The Nasdaq Composite also advanced, led by a rebound in semiconductor stocks amid broader market optimism.
The inflation print came in below expectations, contrasting with last month’s elevated figures. Oil prices rose, boosting energy sector performance, while tech shares recovered from recent losses. Analysts noted the shift in sentiment as investors weighed the impact of cooling inflation against persistent economic uncertainty.
Markets showed muted reaction to the data, with trading volumes remaining subdued ahead of further economic releases later this week.