Dow Jones, Nasdaq gain over 400 points at close as bond yields fall

US stock indices rose on Tuesday, Aug. 13, with bond yields falling as markets assessed a slowdown in producer price increases in July, boosting investors' hopes for a soft landing scenario in which the Federal Reserve contains inflation without an economic recession.

The Dow Jones Industrial Average advanced 408 points, or 1%, closing at 39,765 points, the highest since Aug. 1 (40,347 points).

Likewise, S&P 500 added 1.7%, or 90 points, to end at 5,434 points, while Nasdaq Composite surged 2.45%, or 407 points, to finish at 17,187 points. The two benchmarks hit their highest levels since the beginning of the month.

Elsewhere, STOXX Europe 600 closed 0.5% up at 501.6 points.

Germany’s DAX 40 edged up 0.5% to 17,812 points. Meanwhile, the CAC 40 Index rose nearly 0.35% to end at 7,275 points. FTSE 100 gained 0.3% to end at 8,235 points.

In Japan, Nikkei surged 3.45%, or 1207 points, to 36,232 points. TOPIX also gained 2.85%, to 2,553 points.

In the oil market, futures for benchmark Brent crude for October delivery shed 1.95%, or $1.61, to $80.69 a barrel.

Meanwhile, the price of US WTI crude for September delivery fell 2.15%, or $1.71, to $78.35 a barrel.

As for gold, December futures prices hit a new record level, adding 0.15%, or $3.8, to $2,507.8 per ounce.

Economic data showed that the Producer Price Index (PPI) rose in July by 2.2% on an annual basis, a slowdown from the June record of 2.7%. This came against expectations of an increase of 2.3% during the past month.