The Dow Jones Industrials jumped 103.6 points to 34,108.64.
The S&P 500 gathered 29.09 points to 4,019.65
The NASDAQ Composite Index leaped 113.08 points, or 1%, to 11,256.81.
Energy stocks led the gains, with shares of Chevron the leading outperformer in the Dow.
Tech stocks that have been hit the hardest from rising inflation and rates in 2022, also rose. Shares of Meta galloped more than 4% and Google-parent Alphabet was up more than 2%.
The consumer price index rose just 0.1% from the previous month, and increased 7.1% from a year ago, the U.S. Labor Department reported Tuesday. Economists surveyed by Dow Jones had been expecting a 0.3% monthly increase and a 7.3% 12-month increase.
Excluding volatile food and energy prices, so-called core CPI rose 0.2% on the month and 6% on an annual basis, compared to respective estimates of 0.3% and 6.1%.
Prices for the 10-year Treasury were up sharply, lowering yields to 3.51% from Monday’s 3.62%. Treasury prices and yields move in opposite directions.
Oil prices picked up $2.24 to $75.41 U.S. a barrel.
Gold prices surged $30.00 to $1,822.30 U.S. an ounce.