Stocks rise on cooler-than-expected inflation data

Stocks are mixed on Wall Street on Tuesday after the government reported another decline in the pace of wholesale price inflation last month — a sign that inflationary pressures in the U.S. might be easing. Investors were fueled by hopes the figures could influence the Federal Reserve ahead of its December meeting.

The S&P 500 surged as high as 4,009 before coasting to 3.980, up by 0.6%. The Dow fell 0.2% after rising by half a percentage point, while the Nasdaq climbed 1.1%.

The government reported that prices at the wholesale level rose 8% in October from 12 months earlier, the fourth straight decline and the latest sign that inflation pressures in the United States are easing from painfully high levels.