Stocks climb as oil prices dip heading into US CPI print
SPY•World stocks rose as Brent crude fell more than 2% to below $90 a barrel ahead of US inflation data. Traders priced an 82.2% chance of a Federal Reserve rate hike next month, up from 74% a week earlier.
1. Stocks rebound as oil falls
World stocks rose on Tuesday as oil prices fell after US President Donald Trump said he planned to hold off on new military strikes against Iran. Brent crude futures dropped more than 2%, dipping below $90 a barrel for the first time since late August, while the pan-European STOXX 600 gained 0.5%. The S&P 500 futures edged 0.1% higher, and the Nasdaq had closed up 2.7% on Monday.
2. Asia shares advance
South Korea's KOSPI rose 4.4%, Japan's Nikkei gained 2.9% and MSCI's broadest index of Asia-Pacific shares climbed 2%. Investors were also watching earnings from technology companies including CoreWeave and the planned Anthropic IPO, which the company is expected to formally launch on Tuesday.
3. Inflation and rates in focus
US inflation data due later Tuesday could influence the near-term interest-rate outlook. Traders priced an 82.2% chance of a rate hike next month, compared with 74% a week earlier, following a strong October jobs report. The two-year Treasury yield rose 3.3 basis points to 4.58%.
