US stocks closed higher on Tuesday, recovering some of their losses after the collapse of three banks tested markets on Monday.
While most bank stocks rallied Tuesday, the smoke hasn’t cleared just yet: Moody’s Investors Service slashed its outlook for the US banking sector and placed six US banks on review for potential credit rating downgrades.
Traders cheered the lack of surprises in the February Consumer Price Index inflation reading and looked ahead to Wednesday’s Producer Price Index, which economists say could show a slowing in wholesale prices. Ahead of the Federal Reserve’s policy meeting next week, investors are keeping a close watch for any signs that inflation is cooling.
February retail sales data is also on deck Wednesday morning, along with a homebuilders survey that should give some insight into the health of the housing market.
The Dow closed up 335 points, or 1.1%, on Tuesday.
The S&P 500 rose 1.7%.
The Nasdaq Composite gained 2.1%.
This article was originally published by CNN.
