US equities rally post PPI data

US equities moved sharply higher over the course of the trading day on Tuesday. The major averages on the Wall Street saw continued strength going into the close, ending the day near their highs of the session. The Nasdaq soared 407.00 points or 2.4 percent to 17,187.61, the S&P 500 surged 90.04 points or 1.7 percent to 5,434.43 and the Dow jumped 408.63 points or 1.0 percent to 39,765.64.

On the economic front, the Labor Department said its producer price index for final demand inched up by 0.1 percent in July after rising by 0.2 percent in June. Meanwhile, the report said the annual rate of producer price growth slowed to 2.2 percent in July from an upwardly revised 2.7 percent in June. The notable slowdown by the annual rate of price growth increased confidence the Federal Reserve will lower interest rates at its monetary policy meeting next month.

The dollar index pulled back notably and is quoting at 102.45. US benchmark treasury yields also eased below 3.9% following producer prices inflation data. On Wednesday, the Labor Department is scheduled to release its more closely watched report on consumer price inflation in the month of July.

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