Market Highlights

A cooler-than-estimated inflation reading spurred gains in both stocks and bonds, easing concern about imminent Federal Reserve interest-rate hikes despite a resurgence in oil prices. The data brought some relief to Wall Street traders worried about a flare-up in geopolitical threats, with the S&P 500 extending this month’s advance. At the start of the earnings season, big banks posted solid results. A rally in chipmakers also helped sentiment, driving the Nasdaq 100 up 1.1%. That’s even as International Business Machines Corp. sank 25% on a sales miss. Asian shares rose as traders trimmed bets on Federal Reserve interest-rate hikes following cooler-than-expected US inflation data, while the artificial intelligence trade gathered fresh momentum. Oil gained.