04:56 PM EDT, 08/13/2024 (MT Newswires) -- US benchmark equity indexes rose Tuesday, aided by a report showing that producer prices increased less than projected in July, while markets awaited official consumer inflation data due Wednesday.

The Nasdaq Composite jumped 2.4% to 17,187.6, while the S&P 500 gained 1.7% to 5,434.4. The Dow Jones Industrial Average advanced 1% to 39,765.6. Technology and consumer discretionary led the gainers among sectors, while energy was the only decliner.

In economic news, the US producer price index rose 0.1% month over month in July on a seasonally adjusted basis, the Bureau of Labor Statistics reported. This compared with the Bloomberg-polled consensus for a 0.2% gain. PPI climbed 2.2% annually last month, below the 2.3% pace that analysts were projecting.

"A cooler-than-expected PPI report offers welcome support for those in favor of a near-term rate reduction," Stifel said in a note to clients. "That being said, the lack of consistency throughout the underlying components with an uptick in prices excluding food, energy and trade services puts even more focus on tomorrow's (consumer price index) release as an indication of the trend in price pressures."

The US CPI is expected to have increased 0.2% sequentially and 3% annually in July, according to a Bloomberg-compiled consensus.

Small business optimism in the US grew last month to its highest level since February 2022, though inflation remained owners' top concern, the National Federation of Independent Business' latest survey showed.

"Combined with an uptick in inflation concerns, it seems that while overall sentiment is improving, small businesses are remaining cautious for the time being," TD said in a note to clients.

The US two-year yield fell 7.5 basis points to 3.94% Tuesday, while the 10-year rate dropped 6.1 basis point to 3.85%.

Atlanta Federal Reserve President Raphael Bostic said that although recent data have made him "more confident" that policymakers can bring inflation back to their 2% target, he wants to see "a little more data" to support a case for monetary policy easing, Reuters reported.

West Texas Intermediate crude oil decreased 2% to $78.45 a barrel. "Oil prices fell as markets refocused on concerns about demand after (the Organization of the Petroleum Exporting Countries) cut its forecast for demand growth in 2024 due to softer expectations in China," D.A. Davidson said in a note to clients.

In company news, Starbucks ( SBUX ) has poached Chipotle Mexican Grill ( CMG ) Chief Executive Brian Niccol, who will assume the top role at the coffee giant next month. Starbucks ( SBUX ) shares jumped nearly 25%, the top gainer on the S&P 500 and the Nasdaq, while Chipotle dropped 7.5%, the steepest decline on the S&P 500.

Baxter International ( BAX ) has agreed to sell its kidney care segment to investment firm Carlyle Group ( CG ) in a $3.8 billion deal. Baxter shares fell 6.6%, the second-worst performer on the S&P 500, while Carlyle gained 2.4%.

Gold rose 0.1% to $2,506.90 per troy ounce, while silver lost 0.4% to $27.91 per ounce.