US stocks close higher amid optimism over slowing inflation

US stock indexes mostly gained as the Producer Price Index showed a slowdown, fueling optimism about easing inflationary pressures. Investors are now awaiting Wednesday's Consumer Price Index report to assess the Federal Reserve's monetary policy outlook.

The Dow Jones Industrial Average edged up 0.5%, or 221 points, to 42,518 points.

Meanwhile, the S&P 500 Index increased 0.1%, or 6 points, to 5,842 points, and the Nasdaq Composite declined about 0.25%, or 43 points, to 19,044 points.

As for the European indices, the STOXX Europe 600 fell 0.1% to 508.2 points amid negative performance of energy and retail stocks. Also, auto and banking stocks limited the index losses.

The FTSE 100 retreated 0.3% to 8,201 points, the DAX 40 advanced 0.7% to 20,271 points, and the CAC 40 added 0.2% at 7,423 points.

In Japan, the Nikkei 225 dropped 1.85%, or 716 points, to 38,474 points. TOPIX shed 1.15% to 2,682 points.

In the oil market, futures contracts for Brent crude for March 2025 delivery retreated 1.35%, or $1.09, to $79.92 per barrel.

Meanwhile, prices of West Texas Intermediate (WTI) crude oil for February delivery fell 1.65%, or $1.32, to $77.5 per barrel.

As for gold, futures prices for the yellow metal for February delivery inched up 0.15%, or $3.7 to $2,682 per ounce.

According to a report from the Bureau of Labor Statistics, the PPI rose by 0.2% in December 2024, slowing down from a 0.4% increase in November 2024, and contrary to expectations of price growth remaining unchanged.