U.S. stocks rose Tuesday, after the major averages snapped a three-day decline, as traders awaited key inflation data slated for release later in the week.
The Dow Jones Industrial Average advanced 145 points, or 0.4%. The S&P 500 and Nasdaq Composite both advanced 0.2%.
Etsy jumped 6.6%, making it the best-performing stock in the broad market index. Meanwhile, Salesforce‘s stock rose 4% after the company announced it would increase price across the board in August. Industrials names also saw gains, with the Industrial Select Sector SPDR Fund adding 1.4%, hitting an all-time high.
Investors are coming off a positive session for the major averages. On Monday, the Dow Jones Industrial Average gained 209.52 points, or 0.62%, while the S&P 500 advanced 0.24%. The Nasdaq Composite lagged, rising just 0.18%.
The June consumer price index report set for release Wednesday, as well as the June producer price index due out Thursday, will shed light on whether the decline in inflation has continued, and create the backdrop for future direction of interest rates.
Investors have penciled in another quarter-point increase at the Federal Reserve’s July 25-26 meeting. But they are undecided about what the central bank will do at its September meeting after last week’s continued robust jobs data raised concern that policymakers will revert to raising rates following the June pause.
“The pause, agree or disagree, is to gather more information,” Solus Alternative Asset Management’s Dan Greenhaus said Monday on CNBC’s “Closing Bell.” He added, “One more hike or two more hikes is much less important than when, ultimately, they begin to cut rates on the other side of this. That’s much more consequential for, I think, the risk landscape than one more hike or two more hikes.”
Second-quarter earnings season kicks off later this week with results from “systemically important financial institutions” such as JPMorgan Chase, Wells Fargo and Citigroup, plus BlackRock, PepsiCo and Delta Air. Dow component UnitedHealth reports Friday.