US stock indices rose on Tuesday following unexpected inflation data, which changed speculation about Fed policies.

Earlier US data showed consumer prices rose 3.2% y/y in February, up from 3.1% in January, while analysts expected no change.

On a monthly basis, US consumer prices rose 0.4% last month, accelerating from 0.3% in January.

Core prices, excluding food and energy, rose 3.8% y/y in February, slowing down from 3.9%.

According to the Fedwatch tool, the prospects of the Fed maintaining interest rates unchanged at the June meeting rose from 28.4% to 34.6%.

On trading, Dow Jones rose 0.2%, or 70 points to 38,839 as of 16:52 GMT, while SP 500 rose 0.6%, or 30 points to 5148, while SP 500 rose 0.8%, or 137 points to 16,157.