US stock markets experienced significant gains on Tuesday, with the Dow Jones Industrial Average closing at 44,449 points, a 1.1 percent increase from the previous day’s trading.
The broader S&P 500 followed suit, rising 1.1 percent to approximately 6,446 points. Technology-focused Nasdaq 100 saw even stronger performance, gaining 1.3 percent to around 23,839 points.
Contributing to the positive market sentiment was data indicating that US inflation remained stable in July, registering at 2.7 percent. This follows a notable increase in June and contrasts with earlier economic forecasts. Investors are now anticipating a potential response from the Federal Reserve, possibly in the form of interest rate cuts, to address recently increased unemployment figures and stimulate economic growth.
However, the encouraging inflation data may be tempered going forward. Core inflation, which excludes volatile food and energy prices, rose from 2.9 percent in June to 3.1 percent in July, suggesting underlying price pressures are persisting.
In currency markets, the Euro strengthened against the US dollar, trading at 1.1675 US dollars. The dollar was worth 0.8565 Euros.
The price of gold edged slightly higher, closing at 3,347 US dollars per troy ounce, a gain of 0.1 percent, equivalent to 92.17 Euros per gram.
Conversely, oil prices declined. Brent crude, a benchmark North Sea oil, traded at 66.12 US dollars per barrel, a decrease of 0.8 percent from the previous closing price.