Stock market news today: Stocks soar, yields tumble as inflation pressures ease in October

US stocks capped off a strong rally on Tuesday as investors digested a cooler-than-expected inflation print.

The Dow Jones Industrial Average (^DJI) closed up more than 450 points, or around 1.4%, as the tech-heavy Nasdaq Composite (^IXIC) jumped roughly 2.4%. The benchmark S&P 500 (^GSPC) rose 1.9%.

The small cap Russell 2000 (^RUT) index also soared following the data, closing up more than 5% — its best close in over a year.

The 10-year Treasury yield (^TNX) dropped a whopping 19 basis points to trade near 4.44%, while the 30-year Treasury yield (^TYX) declined roughly 12 basis points to 4.62%.

Consumer prices were unchanged from the prior month in October as a drop in oil prices dragged down headline inflation while "core" inflation rose at the slowest annual pace since September 2021, according to the latest data from the Bureau of Labor Statistics released Tuesday morning.

The deceleration signaled to both investors and Wall Street economists that the Federal Reserve could very likely be done raising interest rates.