Stock Market Soars on Moderate Inflation and Tech Gains

Wall Street indices rose due to moderate producer inflation rates, which investors see as guiding Federal Reserve's future policy. Key tech stocks like Nvidia and Tesla surged, while banks are set to report stronger earnings. Traders expect slight rate cuts by year-end.

Wall Street's major indices climbed on Tuesday as December's producer inflation numbers were softer than expected, influencing Federal Reserve policy speculation. Core producer prices increased by 3.5%, below the forecast, offering relief to investors eyeing inflation and economic growth.

Tech giants Nvidia, Tesla, and Amazon saw significant gains ahead of the market open, buoying investor sentiment. Market participants are also anticipating strong quarterly reports from major banks, including JPMorgan Chase and Morgan Stanley, driven by robust trading and dealmaking activities.

In the broader economic scene, potential tariff policies from the incoming Trump administration loomed as a concern. However, reports of new investment in companies like Applied Digital boosted sector confidence. Wall Street remains watchful of upcoming Federal Reserve member comments and economic data releases.

(With inputs from agencies.)