US stocks jump as slowing wholesale inflation adds to hopes the Fed will ease rate hikes soon

• US stocks opened higher Tuesday as fresh signs of slowing inflation raised hopes for a less hawkish Fed.
• The producer price index rose 0.2% in October from the prior month, below the consensus estimate for a 0.4% gain.

US stocks opened higher Tuesday as fresh signs of slowing inflation raised hopes for a less hawkish Federal Reserve.

The producer price index, a measure of wholesale inflation, rose 0.2% in October from the prior month, below the consensus estimate for a 0.4% gain. On an annual basis, the PPI rose 8% in October, down from 8.5% a month earlier. The report follows a similarly cooler-than-expected consumer price index last week.

Investors are bumping equities bets on hopes that the inflation data will give the Federal Reserve enough reason to slow its pace of rate hikes.

Meanwhile, the meeting between President Joe Biden and China's Xi Jinping at the G20 summit added to optimisim of more stable ties between the world's two largest economies.

Here's where US indexes stood at the 9:30 a.m. opening bell on Tuesday:

• S&P 500: 4,024.50, up 1.70%

• Dow Jones Industrial Average: 33,948.36, up 1.23% (403.23 points)

• Nasdaq Composite: 11,479.35, up 2.53%

Here's what else is going on today:

• Russia's oil exports grew last month, but more than 1 million barrels a day will soon be banned by the European Union, the IEA said.
• Citadel's Ken Griffin said the Federal Reserve has to stay aggressive with rate hikes.
• Anthony Scaramucci thinks crypto heavyweights need to stop bickering on Twitter.

In commodities, bonds, and bitcoin:

• Oil prices fell, with West Texas Intermediate down 0.77% to $85.19 a barrel. Brent crude, the international benchmark, fell 0.72% to $92.45 a barrel.
• Gold ticked up 0.23% to $1,775.20 per ounce.
• The 10-year Treasury yield fell by 5.5 basis points to 3.812%.
• Bitcoin gained 0.40% to $16,917.60.