Wall Street traded in positive territory on Tuesday morning (US time) after a cooler-than-expected inflation reading boosted expectations that the Federal Reserve could have more room to ease monetary policy later this year. Chip stocks rebounded, helping the Nasdaq outperform the broader market.
As of 9:49 a.m. EDT, the Nasdaq Composite was up 138.47 points, or 0.54%, at 26,011.65, while the S&P 500 gained 22.30 points, or 0.30%, to 7,537.64. The Dow Jones Industrial Average edged 14.84 points, or 0.03%, higher to 52,513.48.
Technology shares led the advance after the latest US inflation data came in softer than economists had expected, easing concerns over persistent price pressures and improving risk appetite across equity markets.
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The rally in semiconductor stocks also supported gains on the Nasdaq, with investors returning to AI-linked names after recent weakness.
Market participants are now assessing whether the inflation data strengthens the case for potential interest rate cuts by the Federal Reserve in the coming months. Traders will continue to monitor incoming economic data and comments from Fed officials for further clues on the policy outlook.
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