Stocks climbed across major indexes on Tuesday after the latest consumer price data showed inflation slowing for a third consecutive month, easing pressure on policymakers weighing further interest rate moves.
Analysts said the reading gives the central bank more room to hold rates steady at its next meeting, a shift from earlier expectations of another increase this quarter.
"This is the kind of print the market has been waiting for," one strategist said, pointing to steadier energy prices and a cooling labor market as key drivers behind the trend.
Retail and technology shares led the gains, while bond yields slipped as traders priced in a more cautious path for monetary policy through the rest of the year.
