- US stocks climbed as new data added to indications that inflation may have peaked, bolstering the case for the Federal Reserve to slow its rate hikes. Treasury yields rose on Tuesday, but the dollar declined.
- The S&P 500 gained 0.9%, while the tech-heavy Nasdaq 100 finished at its highest level since September 19. While stocks soared for the majority of the session, concerns that Russian missiles had landed in NATO member Poland briefly dampened the mood in the afternoon.
- Markets have turned riskier in recent days, reacting to a softer-than-expected US consumer price index report, which many believe will allow the Fed to hike interest rates in half-point increments. While a series of Fed speakers in recent days suggested that officials may slow the pace of rate hikes, they also highlighted that the central bank still has work to do to keep inflation under control.
- The producer price index for October came in at 8% year on year on Tuesday, missing the 8.3% prediction and alleviating inflation concerns.
