Dow jumps more than 200 points, S&P 500 pops 1% for new closing high as Nvidia resurges: Live updates
Traders work on the floor during morning trading at the New York Stock Exchange (NYSE) on March 06, 2024 in New York City.

Stocks jumped Tuesday after fresh U.S. inflation data was about in line with expectations, clearing the way for investors to resume buying high-flying tech names such as Nvidia and Meta Platforms.

The Dow Jones Industrial Average gained 235.83 points, or 0.61%, to close at 39,005.49. The S&P 500 ticked up 1.12% to finish the session at 5,175.27, surpassing the previous record high close from March 7. The Nasdaq Composite advanced 1.54% to 16,265.64.

Shares of chipmaker Nvidia climbed more than 7%. Microsoft gained 2.6%, and Meta popped 3.3%. Oracle surged more than 11% after beating Wall Street earnings estimates.

"[I]t's proving difficult to see what may stop the market's momentum, as earnings, inflation, and interest rates are moving in the right direction," said Skyler Weinand, chief investment officer at Regan Capital.

The consumer price index climbed 0.4% in February and 3.2% year over year, the Bureau of Labor Statistics said on Tuesday. Economists polled by Dow Jones expected a 0.4% increase last month and 3.1% year over year. Core inflation, which strips out food and energy from the headline reading, climbed 0.4% in February, compared to a forecast gain of 0.3%.

Investors weren't overly concerned the report would change expectations of the Federal Reserve cutting rates in June. That said, central bank's path to a 2% target could remain "choppy," according to LPL Financial chief economist Jeffrey Roach.

"The inflation experience is a bit like the concentration in the equity markets right now," Roach said. "Outside of shelter and gas prices, inflation would be benign."

Investors now turn their attention to the producer price index report due later this week and the Fed's next monetary policy meeting later this month.