U.S. stocks ended higher on Tuesday (July 14) as a softer-than-expected inflation report rekindled hopes that monetary policy would stabilize.
The Dow Jones Industrial Average rose 0.02 percent to 52,508.27. The S&P 500 added 0.38 percent to 7,543.59. The Nasdaq Composite Index increased 0.9 percent to 26,107.01.
Six of the 11 primary S&P 500 sectors ended in the green, with technology and communication services leading the gainers by going up 1.25 percent and 1.13 percent, respectively. Health and consumer staples led the laggards, falling 1.91 percent and 1.38 percent, respectively.
The market's main catalyst was the June consumer price index (CPI) report, which showed U.S. annual inflation cooling to 3.5 percent. The reading landed comfortably below the 3.8 percent forecast by Wall Street economists, offering significant relief to investors concerned about persistent price pressures driven by recent energy shocks in the Middle East.
According to the CME Group's FedWatch Tool, the market-implied probability of an interest rate hike at the Federal Reserve's upcoming July meeting plummeted to 17 percent, from 42 percent the day prior.
(Source: Xinhua)
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