US stocks climb as Fed comments temper concerns about spiking inflation

• Stocks advanced on Tuesday after Federal Reserve officials calmed nerves about faster inflation.
• The Nasdaq Composite and the Dow Jones Industrial Average were on course for a fourth straight win.
• Fed officials say the inflation surge looks temporary.

US stocks gained ground Tuesday, with a fourth consecutive win in reach as investors appeared to take a calmer view about the recent jump in inflation.

The Nasdaq Composite and the Dow Jones Industrial Average were on course to add to the advances they've made in the past three sessions.

Aiding the gains were comments by Fed Governor Lael Brainard and Atlanta Fed President Raphael Bostic on Monday who said the reopening of the world's largest economy from the COVID-19 pandemic is leading prices to accelerate. Such increases are likely to be temporary, they said.

Here's where US indexes stood at 9:30 a.m. on Tuesday:

• S&P 500: 4,208.22, up 0.3%
• Dow Jones Industrial Average: 34,455.49, up 0.18% (61.51 points)
• Nasdaq Composite: 13,726.76, up 0.5%

"At the moment, the big story is Fed communication and how this communication is winning out against worry that inflation should be a bigger concern than it is," said analysts at LMAX Group in a note Tuesday. Consumer price inflation in April soared to 4.2%, the fastest rise in more than 10 years.

Around the markets, Lordstown Motors shares tumbled Tuesday after the company cut its annual production guidance and said it needs to raise more money as it aims to start production on its electric pickup truck this year.

Gold edged up 0.1% to $1,881.75 per ounce. Long-dated US Treasury yields fell, with the 10-year yield at 1.59%.

Oil prices fell. West Texas Intermediate crude declined 0.5%, to $65.70 per barrel. Brent crude, oil's international benchmark, slipped 0.4% to $68.22 per barrel.

Bitcoin dropped 4%, to $36,987.31.