Dow futures rose more than 400 points as another report indicated that inflation may slow

Stock futures rose on Tuesday after another report indicated that inflation may slow, reigniting a rally in stocks.

Futures linked to the Dow Jones Industrial Average rose 412 points, or 1.2%. S&P 500 futures added nearly 2% and Nasdaq-100 futures added 3%.

producer price index, wholesale inflation measure, up 0.2% for the month, Against consensus estimates pointing to a 0.4% increase in the Dow. The report comes after last week’s consumer price index data showed signs of easing inflationary pressure last month, which led to a sharp rise.

Wal-Mart stock I jumped in pre-market trading After the company beat Wall Street’s earnings and revenue estimates and boosted its full-year guidance. Home Depot reported strong results as well but kept guidance in place for the full year. Its shares fell slightly.

“After last week’s CPI spurred a sharp rally in stocks and a reversal in the dollar, an important theme for markets this week will be the Fed’s reaction,” Huw Roberts, head of analytics at Quant Insight, wrote in a note Monday.

Elsewhere, Taiwan Semiconductor, Louisiana-Pacific and Paramount jumped after regulatory filings showed Warren Buffett’s Berkshire Hathaway It bought new positions in the first two, and raised its stake in the last two.

Earnings season continues this week with retail reports from Target, Lowe’s, Bath and Body Works, Macy’s, Kohl’s, and Foot Locker on deck.