Stock market today: Tech stocks lead rally after inflation data sets table for CPI

US stocks closed in a sea of green Tuesday as Wall Street digested cooler-than-expected inflation data and awaited an update on consumer prices, with the
July CPI report
due Wednesday morning.

Tech stocks led the day’s rally with the Nasdaq Composite (
^IXIC
) surging about 2.4% while the benchmark S&P 500 (
^GSPC
) rose about 1.7%. The Dow Jones Industrial Average (
^DJI
) edged up roughly 1%.

It’s the best five-day stretch since November for the Nasdaq Composite, Nasdaq 100 (
NQ=F
), and S&P 500, with each notching four straight wins.

US producer prices, often a signal for where consumer prices are heading,
rose just 0.1% month-over-month in July
, lower than economist forecasts. Year-over-year, the Producer Price Index (PPI) rose 2.2%, nearly in line with the Federal Reserve’s 2% target for inflation.

The PPI release serves as an appetizer for Wednesday’s reading on consumer prices. July’s retail sales reading, a key indicator of the health of the US consumer, is set to follow on Thursday.

Home Depot (
HD
) was the most significant name on the earnings docket Tuesday. The home-improvement retailer’s shares fell after it cut its outlook on comparable same-store sales for the rest of the year.

In other individual movers, Starbucks (
SBUX
) stock closed up 24% after a shock announcement that it was
replacing its CEO with Chipotle chief Brian Niccol
. Chipotle (
CMG
) shares
tumbled more than 7%
.

Meanwhile, Nvidia (
NVDA
) gained roughly 7%,
building on a 4% gain
on Monday as analysts at Bank of America named it a top “rebound” stock.