STORY: Wall Street's main indexes all advanced Tuesday and the Nasdaq notched a record closing high as comments from Federal Reserve Chair Jerome Powell reassured investors.
The Dow rose one third of one percent, the S&P 500 climbed one half of one percent and the Nasdaq added three quarters of one percent.
U.S. producer prices increased more than expected in April as the cost of services and goods rose sharply, leading traders to pare back bets of a first rate cut in September.
But Powell on Tuesday described the producer price index report as more mixed than hot given that prior-period data was revised lower.
He also said he did not expect the central bank's next interest rate move to be a hike, despite the recent run of higher-than-expected inflation.
Nancy Daoud CEO of Opus: Advice First, an Ameriprise wealth advisory said the mood could change Wednesday with the release of the consumer price index.
"There's a lot of expectations about the inflation numbers tomorrow of course, and quite frankly, it's about expectations. You know, if we expect that the inflation numbers will be improved, then the market will boom and if they are improved then the market will boom. But if they come out still a little stubborn or even higher, then the market will also react for a day or so, you know somewhat of a reflex reaction, as the market always does. But then ultimately things balance out in the end."
Stocks on the move included U.S.listed shares of Alibaba which fell six percent after it reported an 86% drop in fourth-quarter profit.
And after surging 74% Monday, GameStop jumped 60% Tuesday after flag bearer Roaring Kitty posted on X.com for the first time in three years.
