US equities closed in the green on Tuesday as Wall Street absorbed cooler-than-anticipated inflation data and awaited the release of the consumer price index (CPI) report scheduled for Wednesday morning.
Technology stocks spearheaded the day’s rally, with the Nasdaq Composite (^IXIC) surging approximately 2.4%, while the benchmark S&P 500 (^GSPC) rose around 1.7%. The Dow Jones Industrial Average (^DJI) edged up roughly 1%.
This marks the best five-day stretch since November for the Nasdaq Composite, Nasdaq 100 (NQ=F), and S&P 500, with each index notching four consecutive wins.
US producer prices, often a leading indicator for consumer prices, increased just 0.1% month-over-month in July, lower than economists’ forecasts. Year-over-year, the Producer Price Index (PPI) rose 2.2%, nearly in line with the Federal Reserve’s 2% target for inflation.
The PPI release serves as a preview for Wednesday’s consumer price data. July’s retail sales figures, a key indicator of the health of the US consumer, are set to be published on Thursday.
Home Depot (HD) was the most prominent name on the earnings docket Tuesday. The home-improvement retailer’s shares declined after it cut its outlook on comparable same-store sales for the remainder of the year.
In other individual movers, Starbucks (SBUX) stock closed up 24% after a surprise announcement that it would be replacing its CEO with Chipotle’s chief, Brian Niccol. Chipotle (CMG) shares, in turn, tumbled more than 7%.
Meanwhile, Nvidia (NVDA) gained roughly 7%, building on a 4% gain on Monday as analysts at Bank of America named it a top “rebound” stock.