Stocks end higher, extending rally on another round of subdued inflation data

Stocks finished higher Wednesday, building on a blockbuster rally the previous session, as investors weighed another round of subdued inflation data. The October producer price index showed a decline in the headline figures, while the core reading, which strips out food and energy,  rose 0.1%, down from a 0.3% gain in September. Stocks surged Tuesday, with the S&P 500 posting its largest, one-day percentage gain since Jan. 6 and finishing at a two-month high after a subdued consumer price index reading saw investors largely conclude the Federal Reserve’s rate-hiking cycle has come to an end and price in a series of 2024 rate cuts. The Dow
DJIA,
+0.47%
on Wednesday rose around 164 points, or 0.5%, to close near 34,991, according to preliminary data, while the S&P 500
SPX,
+0.16%
rose 0.2% and the Nasdaq Composite
COMP,
+0.07%
gained 0.1%.