Dow futures rose more than 400 points as another report indicated that inflation may slow

Stock futures rose on Tuesday after another report indicated that inflation may be slowing, reigniting a rally in stocks.

Futures related to the Dow Jones Industrial Average rose 412 points, or 1.2%. S&P 500 futures added nearly 2% and Nasdaq-100 futures rose 3%.

The Producer Price Index, a measure of wholesale inflation, rose 0.2% for the month, versus the consensus estimate of a 0.4% increase from the Dow.

walmart stock Jumped into pre-market trading After the company beat Wall Street earnings and revenue estimates and boosted full-year guidance. Home Depot reported strong results as well but kept the guidance in place for the full year. Its shares fell slightly.

The Producer Price Index, which measures wholesale inflation, is due for release at 8:30 AM ET. The report comes after recent CPI data showed signs of easing inflationary pressure last month, sparking a sharp rally to end trading last week.

“After last week’s CPI spurred a massive rally in equities and a reversal in the dollar, the big topic for markets this week will be the Fed’s reaction,” wrote How Roberts, head of analytics at Quant Insight, in a note Monday.

Federal Reserve Governors Christopher Waller and Lyle Brainard spoke on Sunday and Monday, respectively, about the possible future course of monetary policy. Waller said the market is overly optimistic and should prepare for higher rates, while Brainard said the central bank could moderate rate increases.

Philadelphia Fed President Patrick Harker, Fed Governor Lisa Cook and Fed Vice Chair of Supervision Michael Barr are scheduled to speak on Tuesday.

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Elsewhere, Taiwan Semiconductor, Louisiana-Pacific and Paramount jumped after regulatory filings showed Warren Buffett’s Berkshire Hathaway It bought new positions in the first two, and raised its stake in the last two.

Earnings season continues this week with retail reports from Target, Lowe’s, Bath and Body Works, Macy’s, Kohl’s and Foot Locker on deck.

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