Stock market news today: Dow snaps 5-day losing streak after CPI

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US stocks rise as bank shares rebound and CPI shows inflation continues to cool

US stocks climbed Tuesday as traders focused on the latest inflation data and continued to assess the fallout from the collapse of Silicon Valley Bank. The Dow Jones Industrial Average closed in the green, breaking a five-day losing streak.

The consumer price index rose 0.4% in February from January—in line with estimates and a sign that inflation is cooling as the US central bank determines its next move for interest rate hikes. Year-over-year, inflation was 6%, down from 6.4% in February. Regional bank stocks soared after cratering on Monday from the collapse of SVB and Signature Bank. Shares of First Republic and PacWest jumped 25% and 28% on the day, respectively. However,for a potential downgrade as the SVB fallout pose a risk to the health of regional banking institutions.

The succession of bank failures has sparked heightened speculation the central bank will take a more dovish stance on monetary tightening.will pause rate hikes at the FOMC meeting next week, citing"considerable uncertainty." "In light of recent stress in the banking system, we no longer expect the FOMC to deliver a rate hike at its March 22 meeting with considerable uncertainty about the path beyond March," analysts wrote in a client note on Sunday.

 

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