Investing.com - Battered technology shares shot up on demand from bottom fishers Tuesday and brought broader indices up with them, with positive earnings and economic data reversing earlier losses at the closing bell as well.
At the close of U.S. trading, the Dow 30 rose 0.55%, the S&P 500 index rose 0.68%, while the Nasdaq index rose 0.28%.
Biotech, Internet and other tech companies plunged last week on concerns that valuations have grown too frothy after a five-year bull market fueled in part by loose monetary policies, though bottom fishing this week reversed much of the tech's losses.
Elsewhere, Coca-Cola Company (NYSE:KO) and Johnson & Johnson (NYSE:JNJ) reported better-than-expected earnings for the first quarter earlier Tuesday, which boosted stocks from negative territory into positive as well.
On the data front, solid inflation figures offset soft housing and regional manufacturing numbers and drew applause as well, solidifying expectations that the economy is in less need of Federal Reserve stimulus measures though benchmark borrowing costs will still remain low for some time to come.
The Labor Department reported earlier that the U.S. consumer price index rose 0.2% in March, exceeding expectations for a 0.1% gain, after a 0.1% uptick the previous month.
The on-year rate rose 1.5% in March, beating estimates for a 1.4% gain though still below the Fed's 2% target.
The core consumer price index, which excludes volatile food and energy items, rose 0.2% last month, beating estimates for a 0.1% increase, after a 0.1% gain in February.
The on-year core consumer prices index rose 1,7%, beating estimates for the index to remain unchanged at 1.6%.
Elsewhere, a separate report showed that the Empire State manufacturing index fell to 1.3 for April from 5.6 in March, defying expectations for a rise to 8.2.
Separately, the National Association of Home Builders/Wells Fargo Housing Market Index came in at 47 for April, missing market calls for a reading of 50.
Readings below 50 mean more builders view market conditions as poor than favorable, and April's showing marked the third consecutive month of a number below that threshold.
Leading Dow Jones Industrial Average performers included Coca-Cola Company (NYSE:KO), up 3.73%, Johnson & Johnson (NYSE:JNJ), up 2.12%, and Visa Inc (NYSE:V), up 1.50%.
The Dow Jones Industrial Average's worst performers included Verizon, down 0.75%, Wal-Mart Stores Inc (NYSE:WMT), down 0.69%, and International Business Machines (NYSE:IBM), down 0.40%.
European indices, meanwhile, finished lower.
After the close of European trade, the DJ Euro Stoxx 50 fell 1.24%, France's CAC 40 fell 0.89%, while Germany's DAX fell 1.77%. Meanwhile, in the U.K. the FTSE 100 fell 0.64%.
On Wednesday, the U.S. is to produce reports on housing starts, building permits and industrial production.