U.S. equities advanced as the rotation into value stocks resumed following a weak inflation report. Treasury yields turned lower after a 10-year note auction. The dollar weakened.
The S&P 500 notched its best two-day advance since early February, led by financial firms and producers of raw materials. A lower-than-expected inflation reading eased concern that prices will spike higher if growth picks up as many economists now predict. The Dow Jones Industrial Average rose to a record, closing above 32,000 for the first time. Tech shares whose valuations look stretched in an era of higher yields slipped after Tuesday’s rebound from weeks of selling.