Stocks closed higher on Wall Street after the government reported that inflation cooled more than expected last month, cementing expectations that the Federal Reserve is about to dial down the size of its interest rate hikes.
The Fed is widely expected to raise its benchmark rate a half-point Wednesday, smaller than the past four mega-increases of three-quarters of a point. The S&P 500 rose 0.7% Tuesday, the Nasdaq rose 1% and the Dow rose 0.3%. Treasury yields fell sharply.
The S&P 500 rose 29.09 points, or 0.7%, to 4,019.65.
The Dow Jones Industrial Average rose 103.60 points, or 0.3%, to 34,108.64.
The Nasdaq rose 113.08 points, or 1%, to 11,256.81.
The Russell 2000 index of smaller companies rose 13.75 points, or 0.8%, to 1,832.36.
For the week:
The S&P 500 is up 85.27 points, or 2.2%.
The Dow is up 632.18 points, or 1.9%.
The Nasdaq is up 252.20 points, or 2.3%.
The Russell 2000 is up 35.70 points, or 2%.
For the year:
The S&P 500 is down 746.53 points, or 15.7%.
The Dow is down 2,229.66 points, or 6.1%.
The Nasdaq is down 4,388.16 points, or 28%.
The Russell 2000 is down 412.95 points, or 18.4%.
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