In a significant turn of events, the US stock market experienced a robust rally on Tuesday, buoyed by inflation data that was more favorable than anticipated.
This positive development saw the Dow Jones Industrial Average making a substantial leap, soaring over 570 points, an increase of approximately 1.7%.
This surge was mirrored in the performance of the tech-heavy Nasdaq Composite, which ascended by roughly 2.2%, while the benchmark S&P 500 also climbed by an impressive 2%.
The small-cap Russell 2000 index wasn’t left behind, as it enjoyed its best day in nearly a year, following the encouraging inflation data.
This news also positively impacted the bond market, with the 10-year Treasury yield experiencing a significant drop of 17 basis points, trading near 4.46%. Similarly, the 30-year Treasury yield declined by about 13 basis points, settling at 4.62%.
From a corporate perspective, Home Depot (NYSE:HD) shared quarterly results that revealed a smaller decline in same-store sales than expected.
This report leads a series of announcements expected from major retailers such as Target (NYSE:TGT) and Walmart (NYSE:WMT) within the week. While consumer spending remains resilient despite rising borrowing costs, this trend hasn’t broadly translated into gains for retail stocks.
The global geopolitical landscape is also under keen observation, particularly with the upcoming APEC summit in San Francisco.
A significant highlight of this event will be the meeting between U.S. President Joe Biden and Chinese President Xi Jinping.
This meeting, scheduled for Wednesday, is expected to yield a crucial agreement wherein China will intensify efforts to curb the manufacture and export of fentanyl, as reported by Bloomberg. Such developments could signal a thawing in the relations between the U.S. and China, potentially impacting international trade and global market sentiments.
Featured Image – Freepik
Author Kristen Moran 
