US STOCKS-S&P 500 rises on inflation data, but rocky on geopolitics
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Updates with close of US trading
By Lewis Krauskopf, Amruta Khandekar and Ankika Biswas
Nov 15 (Reuters) - The S&P 500 gained on Tuesday, fueled by softer-than-expected inflation data that raised hopes of a pullback in rate hikes by the U.S. Federal Reserve, but a report of Russian missiles crossing into Poland sparked volatility in the latter half of the session.
Equities were boosted bythat showed producer prices rising 8% in the 12 months through October against an estimated 8.3% rise.
The gains built on a rally that kicked off late last week by a cooler-than-expected report on consumer prices.
"The market has been driven by the inflation that came out a little bit lower than expected and confirmed last week's to some degree that we may have rounded the corner on inflation," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.
The market was "a little bit more volatile this afternoon as stories came out about the Russian missile landing in Poland," Tuz said.
According to preliminary data, the S&P 500 .SPX gained 35.02 points, or 0.88%, to end at 3,992.18 points, while the Nasdaq Composite .IXIC gained 164.74 points, or 1.47%, to 11,360.96. The Dow Jones Industrial Average .DJI rose 60.06 points, or 0.18%, to 33,596.76.
Two people were killedin Przewodow, a village in eastern Poland the border with Ukraine, firefighters said as NATO allies investigated reports that the blast resulted from Russian missiles.
The Associated Press earlier cited a senior U.S. intelligence official as saying the blast was due to Russian missiles crossing into Poland. But the Pentagon said it could confirm that account.
Stocks pulled back around mid-day after the report, with the Dow turning , before they steadied.
"The decline was triggered by reports of a Russian missile landing in Poland," said Steve Sosnick, chief strategist at Interactive Brokers. "This could develop into something far worse, but right markets are , panicked."
Shares of Walmart Inc WMT.N jumped after the top U.S. retailer s, benefiting from a steady demand for groceries despite higher prices.
Shares of other retailers, including Target Corp TGT.N and Costco COST.O, also rose following Walmart's report.
(Reporting by Lewis Krauskopf and Carolina Mandl in New York, Shubham Batra, Sruthi Shankar, Amruta Khandekar and Ankika Biswas; Additional reporting by Devik Jain;
Editing by Shounak Dasgupta and Arun Koyyur)