The US markets ended in green on Tuesday, with Nasdaq settling over one percent, following the release of a report from the Labor Department showing consumer prices in the U.S. inched up by less than expected in the month of November. The Labor Department said its consumer price index crept up by 0.1 percent in November after climbing by 0.4 percent in October. Street had expected consumer prices to rise by 0.3 percent. Excluding food and energy prices, core consumer prices edged up by 0.2 percent in November after rising by 0.3 percent in October. Core prices were expected to show another 0.3 percent increase. The report also showed the annual rate of growth by consumer prices slowed to 7.1 percent in November from 7.7 percent in October. The year-over-year increase in November, which came in below street estimates for a slowdown to 7.3 percent, reflects the slowest annual growth since December 2021.
However, upside remained capped as traders seemed reluctant to make significant beats ahead of the Federal Reserve's monetary policy announcement on Wednesday. The Fed is widely expected to raise interest rate by another 50 basis points, with traders likely to pay close attention to the accompanying statement for clues about the outlook for future rate hikes. On the sectoral front, oil service stocks turned in some of the market's best performances on the day, driving the Philadelphia Oil Service Index up by 3.6 percent. The rally by oil service stocks came amid a sharp increase by the price of crude oil, with crude for January delivery spiking $2.22 to $75.39 a barrel. A jump by the price of gold also contributed to substantial strength among gold stocks, as reflected by the 2.6 percent surge by the NYSE Arca Gold Bugs Index.
Dow Jones Industrial Average surged 103.6 points or 0.3 percent to 34,108.64, Nasdaq rose 113.08 points or 1.01 percent to 11,256.81 and S&P 500 was up by 29.09 points or 0.73 percent to 4,019.65.
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