Wall Street is rebounding Tuesday, and the most battered
areas of the market are leading the way.

The S&0 500 was 1% higher after back-to-back losses.
The Dow Jones Industrial Average surged 209 points or 0.6%, at 34,517, as of
10:27 a.m. Eastern time. The Nasdaq composite was 1.6% higher as the technology
stocks bounced back.

Also Read | New York Lt Gov Brian Benjamin arrested in campaign donation scheme

A report released on Tuesday morning showed that March
inflation was at its highest level in decades, driven by soaring fuel prices,
but it wasn’t as bad as economists expected when ignoring the costs of food and
fuel.

Stocks in recent days have been trading in the opposite
direction of Treasury yields

Also Read | Barack Obama calls Putin ‘ruthless’, his Ukraine moves ‘reckless’

But soon after the inflation report, treasury yields
pulled back. The 10-year yield slipped to 2.70% from 2.77% late Monday. It was
as high as 2.83% overnight before the inflation report’s release. The 10-year
yield remains well above the 1.51% level where it began the year.

A measure of nervousness among stock investors also fell
immediately after the inflation report.

Also Read | US Premarket: Hewlett Packard, Chegg and other stocks making biggest moves

The price of US crude oil rose 5.8% to $99.73, keeping
the weight on high inflation. In the international oil benchmark, Brent crude
went up 5.7% to $104.14.

Increasing interest rates from the Federal Reserve will
slow the economy, which will hopefully bring down high inflation. Consumer
prices were 8.5% higher in March than a year earlier, accelerating from
February’s 7.9% inflation rate and the highest since 1981.

Also Read | India ready to supply food stock to world if WTO gives nod: PM Modi

Minutes from the latest Fed meeting showed that it’s prepared
to hike short-term rates by half a percentage point, double the usual amount,
at some upcoming meets. The market is concerned that aggressive interest rate
hikes by Federal Reserve may force the economy into a recession.

The tech stocks boosted the S&P 500 the most on
Tuesday, with Apple, Microsoft, and Nvidia all up at least 1%.

Also Read | US says India buying Russian oil ‘not violation of sanctions’

More swings may be in store for stocks as companies
prepare to report their earnings for the first three months of the year. Delta
Air Lines, JPMorgan Chase and other big-name companies are expected to release
quarterly reports on Wednesday.