By Liz Moyer
Investing.com -- U.S. stocks were rising after inflation data met expectations, fueling hopes for a smaller interest rate increase by the Federal Reserve next week.
At 9:44 ET (13:44 GMT), the Dow Jones Industrial Average rose 303 points or 0.9%, while the S&P 500 rose 1.5% and the NASDAQ Composite rose 1.9%.
The Bureau of Labor Statistics reported a 0.4% rise in the consumer price index in February from the previous month, cooling slightly from January’s reading. On an annual basis, inflation rose 6%, also cooling from the prior reading. Core prices, which exclude food and fuel, rose 0.5% from the prior month, slightly more than expected.
Most futures traders are expecting a quarter of a point rate hike next week, though 15% of traders are betting on the Fed to pause rate hikes, according to CME’s FedWatch tool. Just last week, expectations were running high for a half-point rate hike.
Also fueling hopes for a less aggressive Fed: the collapse of Silicon Valley Bank (NASDAQ:SIVB) over the weekend, which has rippled through bank stocks on fears of a wider contagion. Regulators have stepped in to backstop depositors of SVB and Signature Bank (NASDAQ:SBNY), which also shut down.
Shares of large regional banks sank on Monday but were rebounding on Tuesday. KeyCorp (NYSE:KEY) was up 15% in early trading. Comerica Inc (NYSE:CMA) was up 11%, while PacWest Bancorp (NASDAQ:PACW) was up 64%. First Republic Bank (NYSE:FRC) was up 53%.
Meta Platforms Inc (NASDAQ:META) is cutting another 10,000 workers, incurring charges of as much as $5 billion, and warned about the possibility of economic uncertainty sticking around. Shares rose 5.8%.
A California appeals court ruled companies can treat workers as independent contractors, boosting shares of ride-sharing apps Uber Technologies (NYSE:UBER) and Lyft (NASDAQ:LYFT), and delivery service DoorDash (NYSE:DASH).
Oil fell.Crude Oil WTI Futures were down 1.7% to $73.42 a barrel, while Brent Oil Futures were down 1.5% to $79.53 a barrel and Gold Futures were down 0.6% to $1904.