U.S. stocks moved higher on Tuesday as the market reacted to the latest inflation figures. The Dow Jones Industrial Average climbed about 1%, while the S&P 500 and Nasdaq also saw gains of 0.8% and 1%, respectively. Although core inflation rose 3.1% year-over-year—slightly ahead of expectations—the headline Consumer Price Index (CPI) increased by a softer-than-expected 2.7%, bolstering hopes for a Fed rate cut in September.