US equity markets closed higher on Tuesday, driven by a combination of favorable macroeconomic data and positive corporate earnings.
The S&P 500 index climbed 0.3%, while the Nasdaq Composite gained 0.5%, reflecting broad-based buying interest across sectors.
Investors welcomed the latest US inflation figures, which came in better than expected, reinforcing the case for a more accommodative monetary policy stance in the near term.
The positive sentiment was further bolstered by strong quarterly results from major banks, including Bank of America, which reported earnings that met or exceeded analyst expectations.
This dual catalyst of cooling price pressures and resilient financial sector performance helped lift risk appetite, with technology and financial stocks leading the advance.
The market move comes as investors digest the implications of the inflation data for the Federal Reserve's upcoming policy decision.