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Stocks rallied Tuesday, moving closer to last month’s record levels following the first of two key U.S. inflation reports this week.
The Dow Jones Industrial index climbed 408.63 points, or 1%, to conclude Tuesday at 39,765.64.
The S&P 500 index gained 90.04 points, or 1.7%, to 5,434.43.
The NASDAQ popped 407 points, or 2.4%, to 17,187.61.
Starbucks surged more than 21% after the coffee chain tapped current Chipotle chief executive Brian Niccol as its next CEO. Shares of Chipotle sank about 4%.
The producer price index — a measure of wholesale prices — increased 0.1% last month. Economists expected the reading to show a monthly gain of 0.2% in July, in line with the previous month’s reading, according to Dow Jones consensus estimates.
The PPI encouraged investors ahead of the more widely followed consumer price index out Wednesday morning, which is expected to show an increase of 0.2% last month, up from a 0.1% decline in the prior month. The data could give an uncertain market some direction after last week’s wild moves.
Prices for the 10-year Treasury gained ground early Tuesday, lowering yields to 3.85% from Monday’s 3.91%. Treasury prices and yields move in opposite directions.
Oil prices dipped $1.58 at $78.48 U.S. a barrel.
Gold prices were better by $1.90 to $2,505.90.
