Stock market today: Live updates

Stocks rose Tuesday as investors breathed a sigh of relief over a tamer-than-expected inflation report.

The Dow Jones Industrial Average advanced 380 points, or 0.9%. The S&P 500 gained 0.5%, and the Nasdaq Composite rose 0.3%. Shortly after the open, the tech-heavy index had risen to a new intraday high.

Tuesday’s fresh inflation data release reassured investors, who have feared that President Donald Trump’s broad tariff policies could spike prices in the U.S. economy.

The consumer price index rose 2.7% on an annualized basis in July, while a Dow Jones estimate had called for a 2.8% rise. So-called core CPI, which strips out volatile food and energy prices, increased by 3.1% year on year — slightly more than the expected 3%.

Investors were betting that this inflation report was tame enough for the Federal Reserve to cut interest rates multiple times this year. The market is currently pricing in a nearly 91% chance of a rate cut next month, per trading data from the CME’s FedWatch Tool. That’s up from a 85% chance before the data release. Traders also increased their bets on rate cuts in October and December.

The report comes as traders weigh the latest developments on the tariff front. President Donald Trump said Monday he’d extend a 90-day pause on higher levies on Chinese goods.

“Investors seem to be betting on upcoming interest rate cuts and counting on them to counteract the drag from tariffs. We think it is too early to make that assumption,” said Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management. “The degree of tariff impacts and how long they will take to work through the economy remain open questions. In the meantime, high equity valuations may heighten the impact any negative developments have on stock returns.”

Stablecoin issuer Circle Internet Group jumped 12% after reporting a 53% year-over-year rise in its second-quarter revenue.

Wall Street will also parse Thursday’s producer price index report for a reading on wholesale inflation. Both reports come ahead of the Fed’s Jackson Hole gathering at the end of August, ahead of the central bank’s September policy meeting.