U.S. stocks rose on Tuesday after Wall Street applauded vigorous housing data coupled with solid consumer inflation figures.
At the close of U.S. trading, the Dow 30 rose 0.48%, the S&P 500 index rose 0.50%, while the NASDAQ Composite index rose 0.43%.
The Volatility S&P 500 index, which measures the outlook for market volatility, was down 0.97% at 12.20.
The U.S. Commerce Department reported earlier that the number of building permits issued in July jumped 8.1% to 1.052 million units from June’s total of 973,000. Analysts expected building permits to rise by 2.5% to 1.0 million units in July, and the data sparked a rally on Wall Street.
The report also showed that U.S. housing starts soared by 15.7% last month to hit 1.093 million units from June’s total of 945,000, far past expectations for an increase of 8.6% to 969,000 units.
A separate report showed that the U.S. consumer price index rose 0.1% last month from June and 2.0% on year, both figures meeting estimates.
Core consumer prices, which exclude food and energy costs, inched up by 0.1% last month, missing expectations for a 0.2% gain, though the year-on-year rate came in at 1.9%, which met expectations.
In company news, Home Depot Inc (NYSE:HD) shares soared after the home-improvement retailer unveiled earnings that beat expectations and also said it was raising its outlook.
Retailer TJX Companies Inc (NYSE:TJX) raised its 2014 earnings forecast as well, which added to Tuesday's gains.
Leading Dow Jones Industrial Average performers included Home Depot Inc (NYSE:HD), up 5.49%, UnitedHealth Group Incorporated (NYSE:UNH), up 1.35%, and American Express Company (NYSE:AXP), up 1.10%.
The Dow Jones Industrial Average's worst performers included AT&T Inc (NYSE:T), down 0.51%, Goldman Sachs Group Inc (NYSE:GS), down 0.36%, and Intel Corporation (NASDAQ:INTC), down 0.25%.
European indices, meanwhile, ended the higher.
After the close of European trade, the DJ Euro Stoxx 50 rose 0.63%, France's CAC 40 rose 0.56%, while Germany's DAX rose 0.96%. Meanwhile, in the U.K. the FTSE 100 rose 0.56%.
On Wednesday, the Federal Reserve is to publish the minutes of its latest policy meeting.