U.S. stocks ended higher on Tuesday, with the tech-heavy Nasdaq rising by more than 2 percent after official data shows easing inflationary pressures.
At the close of trading, the Dow Jones Industrial Average rose 408.63 points, or 1.04 percent, to 39,765.64. Standard and Poor's 500 index added 90.04 points, or 1.68 percent, to 5,434.43. The Nasdaq Composite Index increased by 407.00 points, or 2.43 percent, to 17,187.61.
Ten of the 11 primary Standard and Poor's 500 index sectors ended in green, with technology and consumer discretionary leading the gainers by going up 3.00 percent and 2.42 percent, respectively. Meanwhile, energy bucked the trend by dropping 1.02 percent.
The latest U.S. Producer Price Index (PPI) data for July, released on Tuesday, showed that both the month-on-month and year-on-year increases were lower than expected. This data confirmed further easing of inflationary pressures in the U.S., reinforcing market expectations that the Federal Reserve may begin cutting interest rates in September.
As investor risk appetite improved, all three major U.S. stock indices closed higher on the day. The "Magnificent Seven" tech giants - Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla - saw gains, with chipmaker Nvidia leading the way with a 6.53 percent increase.
Data shows that some investors have been actively buying the dip in tech stocks during their recent pullback. Over the past four trading days, Nvidia's stock price has rebounded by 17 percent, adding more than 420 billion U.S. dollars to the company's market value.
However, Nvidia executives have been selling company stock frequently in recent months. The management and board members sold more than 700 million U.S. dollars' worth of stock in the first half of this year, setting a record high for the same period.
US stocks surge as inflation data eases concerns
