S&P 500, Dow rise ahead of monthly inflation data

investing.com:

By Johann M Cherian and Bansari Mayur Kamdar

(Reuters) — The Dow and the S&P 500 rose on Tuesday ahead of inflation data, as investors were hopeful that a slowdown in price increases could support a sooner-than-expected end to the Federal Reserve's policy of rapid monetary tightening. The latest data, due on Wednesday, is expected to show consumer prices cooled on an annual basis in June, which could influence bets on another rate hike after the July meeting. Investors have already raised their expectations of a 25 basis-point rate hike later this month after last week's jobs report pointed to a resilient U.S. economy. In the previous session, the main U.S. stock indexes closed a choppy session slightly higher after Fed officials signaled the central bank was nearing the end of its monetary tightening cycle. «Investors are spending a lot of time thinking about the CPI data,» said Peter Andersen, founder of Andersen Capital Management. «They're hoping that those numbers will be a little cooled, which might signal to the Fed that rate hikes are working and that there may be an earlier end to future rate hikes.» New York Fed President John Williams in an interview with the Financial Times said the central bank is not done raising rates. He added that the economy is yet to feel the full impact of past rate hikes. Weighing on the tech-heavy Nasdaq, megacap growth stocks such as Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOGL) slipped 0.3% and 0.1%, extending Monday's losses as Nasdaq Inc said it would rebalance its Nasdaq 100 index to address the benchmark's «overconcentration.» «The impact (of the rebalance) may be modest,» said Art Hogan, chief market strategist at B Riley Wealth. «The big-cap Nasdaq index is going to adjust