Stocks close higher on cooler inflation report, notch second day of gains; European stocks close 1.1% higher
Stocks rose Tuesday after the release of new U.S. inflation data, while traders awaited a key Federal Reserve policy decision.
The Dow rose 123 points, or 0.36%, after surging more than 700 points earlier in the day. The S&P 500 added 0.81%, while the Nasdaq Composite rose 1.08%. At session highs, the S&P 500 was up 2.77%, while the Nasdaq advanced 3.84%.
Stocks initially rallied after the consumer price index showed an increase of just 0.1% from the previous month, and a gain of 7.1% from a year ago, the Labor Department reported Tuesday. Economists surveyed by Dow Jones had been expecting a 0.3% monthly increase and a 7.3% 12-month increase. Excluding volatile food and energy prices, so-called core CPI rose 0.2% on the month and 6% on an annual basis, compared to respective estimates of 0.3% and 6.1%.
The drugmaker saw its stock soar more than 22% after the company issued promising data about its cancer treatment. Moderna announced that its experimental melanoma vaccine combined with Merck cancer treatment Keytruda cut the risk of skin cancer recurrence or death by 44%, compared with a treatment of only Keytruda.
The pan-European Stoxx 600 closed 1.1% higher provisionally, trimming earlier gains of up to 2.2%. Technology stocks rose 3.1% as all sectors and major bourses climbed.
The German consumer price index (CPI) rose by 10% year-on-year in November, shrinking by 0.5% from the previous month, in line with forecasts. On an EU-harmonized basis, annual inflation was 11.3% while there was no monthly change.
Source: CNBC, Investing.com