The Dow Jones Industrials raced 237.28 points to start Tuesday at 34,545.36.
The S&P 500 jumped 47.63 points, or 1.1%, to 4,460.16
The NASDAQ Composite re-attached 265.96 points, or 2%, to 13,677.91.
Tech stocks rallied following the consumer prices report. Microsoft jumped 1.4%. Chip stock Nvidia popped 3.7%, Qualcomm jumped 2.7% and Broadcom rallied 2.5%. Tesla rallied 2.9%.
Energy stocks followed oil prices upward. Devon Energy jumped 4.6%, Marathon Oil popped 4.4%, Chevron spiked 3.8%.
Consumer prices for March increased 1.2% month-to-month and 8.5% annually, the Labor Department said on Tuesday. But traders were focusing on the core reading, which excludes food and energy prices.
Core CPI in March increased 0.3%, below the consensus economist estimate from Dow Jones of 0.5%. Core prices on an annual basis were up 6.5%.
Treasury prices gained ground, putting yields back down to 2.71%, from Monday’s 2.77%. Treasury prices and yields move in opposite directions.
Oil prices regained $4.97 to $99.26 U.S. a barrel.
Gold prices jumped $19.00 to $1,967.20 U.S. an ounce.