Investing.com - Wall Street was higher on Tuesday after consumer prices rose as expected, easing pressure on the Federal Reserve to increase the federal funds rate.
The S&P 500 was up 17 points or 0.64% to 2,800.88 as of 9:51 AM ET (13:51 GMT) while the Dow composite increased 181 points or 0.72% to 25,360.47, and tech heavy NASDAQ Composite rose 41 points or 0.54% to 7,629.61.
Inflation rose as expected on Tuesday, easing fears over the Fed hiking up interest rates higher than expected. The Labor Department said its consumer price index increased 0.2% last month. In the 12 months through February, the CPI rose 2.2%. The numbers were below the Fed’s target rate of 2% core inflation.
On Monday U.S. President Donald Trump blocked microchip maker Broadcom’s proposed takeover of Qualcomm (NASDAQ:QCOM) on national security claims, citing concern that the deal would have given China the advantage in mobile communications.
Qualcomm tumbled 3.14% while rival Intel (NASDAQ:INTC) rose 2.69% amid speculation that the firm could make a counter bid.
Meanwhile semiconductor Micron Technology Inc (NASDAQ:MU) jumped 5.10% while Broadcom (NASDAQ:AVGO) was up 3.41% and and Adobe Systems Incorporated (NASDAQ:ADBE) increased 1.22%. Caterpillar (NYSE:CAT) gained 1.70% and McDonald’s Corporation (NYSE:MCD) inched up 1.13%.
Elsewhere United States Steel Corporation (NYSE:X) fell 3.47% while General Electric (NYSE:GE) was down 3.77% and Tesla (NASDAQ:TSLA) dipped 1.31%.
In Europe stocks were mixed. In Germany the DAX fell 38 points or 0.31% while France’s CAC 40 decreased one point or 0.02% and in London the FTSE 100 fell 25 points or 0.35%. Meanwhile Spain’s IBEX 35 was up 32 points or 0.33% and the pan-European Euro Stoxx 50 inched down half a point or 0.01%.
In commodities, gold futures rose 0.35% to $1,325.40 a troy ounce while crude oil futures surged 0.73% to $61.81 a barrel. The U.S. dollar index, which measures the greenback against a basket of six major currencies, was down 0.13% to 89.77.