US stock indices finished higher on Tuesday after softer inflation data effectively removed the likelihood of a Fed rate hike this month. The S&P 500 rose 0.4%, the Nasdaq climbed 1.1%, and the Dow Jones posted a modest gain. Both headline and core inflation eased, helping to offset the pressure from another jump in energy prices as the US and Iran continued to trade strikes.
Chipmakers rebounded from Monday’s selloff, with Nvidia up 4.1%, Broadcom rising 1.3%, and Micron gaining 4.9%. Most major banks also recovered from early weakness. JPMorgan rose 2.5% after reporting its strongest quarterly profit on record, while Bank of America advanced 1.8%. Citi, however, fell 5.3% after releasing its results.
In the capital markets space, Goldman Sachs surged 9% after beating earnings expectations. On the downside, IBM slumped 25.2% after missing forecasts and warning of softer client spending, as companies redirected budgets this quarter toward chips and memory.
