U.S. stocks jump as key inflation data comes in positive

U.S. stocks opened higher Tuesday as Wall Street digested weaker-than-expected inflation data and awaited an update on consumer prices. The S&P 500 (^GSPC) rose about 0.7%, while the tech-heavy Nasdaq Composite (^IXIC) jumped about 1%. The Dow Jones Industrial Average (^DJI) gained about 0.4%.

U.S. producer prices, which are often a proxy for consumer price inflation, rose just 0.1% month-on-month in July, below economists’ expectations. Year-on-year, the producer price index (PPI) rose 2.2%, nearly in line with the Federal Reserve’s 2% inflation target.

The PPI release serves as an appetizer before Wednesday’s release of consumer prices. July retail sales, a key indicator of U.S. consumer health, are due to follow Thursday.

Wall Street is coming off an unusually dull day after more than a week of volatility. On Monday, the S&P 500 and Nasdaq continued to inch toward the highs the indexes had reached before a wave of selloffs wiped out much of those gains since the start of the year.

Home Depot (HD) was the biggest name in the financial results report Tuesday. Shares of the home improvement retailer fell after it cut its same-store sales forecast for the rest of the year.

Among other individual stocks, Starbucks (SBUX) stock gained more than 15% after the surprise announcement that Chipotle boss Brian Niccol would replace its CEO. Chipotle (CMG) stock fell nearly 10%.

Meanwhile, Nvidia (NVDA) gained more than 3% in early trading, building on a 4% gain on Monday, as Bank of America analysts called it a top “rebound” stock.