The United States (US) stock market ended strongly on Tuesday, with major indexes hitting near two-week highs.
This upward momentum was largely driven by lower US producer inflation data published yesterday, which strengthened expectations for a possible interest rate cut by the Federal Reserve (Fed) in September.
The Producer Price Index (PPI) for July showed a smaller-than-expected increase, with a year-on-year increase of 2.2%, down from 2.7% in June.
This drop in inflation reinforces the belief that the Fed's efforts to control inflation have been effective, raising the possibility of a rate cut in the near future.
Investors' attention is now focused on consumer price index (CPI) data for July scheduled for release tonight (Wednesday), and US retail sales figures on Thursday.
These data are important in shaping market expectations for the Fed's next move.
Looking at the numbers on the main index, the S&P 500 gained 1.68% to close at 5,434.43 points, while the Nasdaq Composite jumped 2.43% to 17,187.61 points.
The Dow Jones Industrial Average also saw gains, rising 1.04% to 39,765.64 points.
The information technology and trading sectors were the top performers, while energy stocks declined due to lower oil prices.
